Senate Bill sb2638

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    Florida Senate - 2004                                  SB 2638

    By Senator Wise





    5-1674-04

  1                      A bill to be entitled

  2         An act relating to unemployment compensation

  3         records; creating s. 443.17161, F.S.; requiring

  4         the Agency for Workforce Innovation to contract

  5         with consumer-reporting agencies to provide

  6         creditors with secured electronic access to

  7         employer-provided information relating to the

  8         quarterly wages reports; providing conditions;

  9         requiring consent from the credit applicant;

10         prescribing information that must be included

11         in the written consent; providing for

12         confidentiality; limiting use of the

13         information released; providing for termination

14         of contracts under certain circumstances;

15         defining the term "creditor"; requiring the

16         agency to establish minimum audit, security,

17         net worth, and liability insurance standards

18         and other requirements it considers necessary;

19         providing that any revenues generated from a

20         contract with a consumer reporting agency must

21         be used to pay the entire cost of providing

22         access to the information; providing that any

23         additional revenues generated must be paid into

24         an agency trust fund for the administration of

25         the unemployment compensation system; providing

26         restrictions on the release of information

27         under the act; defining the term

28         "consumer-reporting" agency; providing an

29         effective date.

30  

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

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    Florida Senate - 2004                                  SB 2638
    5-1674-04




 1         Section 1.  Section 443.17161, Florida Statutes, is

 2  created to read:

 3         443.17161  Authorized electronic access to employer

 4  information.--

 5         (1)  Notwithstanding any other provision of this

 6  chapter, the Agency for Workforce Innovation shall contract

 7  with one or more consumer-reporting agencies to provide

 8  creditors with secured electronic access to employer-provided

 9  information relating to the quarterly wages report submitted

10  in accordance with the state's unemployment compensation law.

11  Such access is limited to the wage reports for the preceding

12  16 calendar quarters.

13         (2)  Creditors must obtain written consent from the

14  credit applicant. Any such written consent from a credit

15  applicant must be signed and must include the following:

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

17  employment history information will be released to a

18  consumer-reporting agency;

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

20  purpose of reviewing a specific application for credit made by

21  the individual;

22         (c)  Notice that the files of the Agency for Workforce

23  Innovation containing wage and employment history information

24  submitted by the individual or his or her employers may be

25  accessed; and

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

27  released information.

28         (3)  Consumer-reporting agencies and creditors

29  accessing information under this section must safeguard the

30  confidentiality of such information and shall use the

31  information only to support a single consumer credit

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    Florida Senate - 2004                                  SB 2638
    5-1674-04




 1  transaction for the creditor to satisfy standard financial

 2  underwriting requirements or other requirements imposed upon

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

 4  applicable state or federal Fair Credit Reporting laws and

 5  rules governing this section.

 6         (4)  If any consumer-reporting agency or creditor

 7  violates any provision of this section, the Agency for

 8  Workforce Innovation shall, upon 30 days' written notice to

 9  the consumer-reporting agency, terminate the contract

10  established between the agency and the consumer-reporting

11  agency resulting from this section.

12         (5)  The agency shall establish minimum audit,

13  security, net-worth, and liability-insurance standards,

14  technical requirements, and any other terms and conditions

15  considered necessary in the discretion of the state agency to

16  safeguard the confidentiality of the information released

17  under this section and to otherwise serve the public interest.

18  The agency shall also include, in coordination with any

19  necessary state agencies, necessary audit procedures to ensure

20  that these rules are followed.

21         (6)  In contracting with one or more consumer-reporting

22  agencies under this section, any revenues generated by such

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

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

25  regulations, any additional revenues generated by the agency

26  or the state under this section must be paid into the

27  Employment Security Administration Trust Fund for the

28  administration of the unemployment compensation system.

29         (7)  The agency may not provide wage and employment

30  history information to any consumer-reporting agency before

31  the consumer-reporting agency or agencies under contract with

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    Florida Senate - 2004                                  SB 2638
    5-1674-04




 1  the agency pay all development and other startup costs

 2  incurred by the state in connection with the design,

 3  installation, and administration of technological systems and

 4  procedures for the electronic-access program.

 5         (8)  The release of any information under this section

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

 7  permitted by the United States Department of Labor and any

 8  subsequent regulations adopted by that department.

 9         (9)  As used in this section, the term:

10         (a)  "Consumer-reporting agency" has the same meaning

11  as that set forth in the federal Fair Credit Reporting Act, 15

12  U.S.C. s. 1681a.

13         (b)  "Creditor" has the same meaning as that set forth

14  in the federal Fair Debt Collection Practices Act, 15 U.S.C.

15  ss. 1692 et seq.

16         Section 2.  This act shall take effect July 1, 2004.

17  

18            *****************************************

19                          SENATE SUMMARY

20    Directs the Agency for Workforce Innovation to contract
      with one or more consumer-reporting agencies to provide
21    secure electronic access to employer information to be
      used in connection with credit applications. Requires
22    recipients of such information to maintain its
      confidentiality and to pay all costs of providing access
23    to it.

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