SF 914

2nd Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to data practices; regulating business screening services; providing civil
penalties and remedies; proposing coding for new law in Minnesota Statutes,
chapter 332.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [332.70] BUSINESS SCREENING SERVICES; DATA PRACTICES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section:
new text end

new text begin (a) "Business screening service" means a person regularly engaged in the business
of collecting, assembling, evaluating, or disseminating criminal record information on
individuals for a fee. Business screening service does not include a government entity, as
defined in section 13.02, or the news media.
new text end

new text begin (b) "Conviction" has the meaning given in section 609.02, subdivision 5.
new text end

new text begin (c) "Criminal record" means a record of an arrest, citation, prosecution, criminal
proceeding, or conviction.
new text end

new text begin Subd. 2. new text end

new text begin Criminal records. new text end

new text begin A business screening service must not disseminate a
criminal record unless the record has been updated within the previous month.
new text end

new text begin Subd. 3. new text end

new text begin Correction and deletion of records. new text end

new text begin (a) If the completeness or accuracy
of a criminal record maintained by a business screening service is disputed by the
individual who is the subject of the record, the screening service shall, without charge,
investigate the disputed record. In conducting an investigation, the business screening
service shall review and consider all relevant information submitted by the subject of the
record with respect to the disputed record.
new text end

new text begin (b) If the disputed record is found to be inaccurate or incomplete, the business
screening service shall promptly correct the record. If the disputed record is found to be
sealed, expunged, or the subject of a pardon, the business screening service shall promptly
delete the record.
new text end

new text begin (c) A business screening service may terminate an investigation of a disputed record
if the business screening agency reasonably determines that the dispute is frivolous, which
may be based on the failure of the subject of the record to provide sufficient information to
investigate the disputed record. Upon making a determination that the dispute is frivolous,
the business screening service shall inform the subject of the record of the specific reasons
why it has determined that the dispute is frivolous and provide a description of any
information required to investigate the disputed record.
new text end

new text begin (d) The business screening service shall notify the subject of the disputed record
of the correction or deletion of the record or of the termination or completion of the
investigation related to the record within 30 days of the date when the agency receives
notice of the dispute from the subject of the record.
new text end

new text begin Subd. 4. new text end

new text begin Date and notice required. new text end

new text begin A business screening service that disseminates
a criminal record must include the date when the record was collected and a notice that
the information may include records that have been expunged, sealed, or otherwise have
become inaccessible to the public since that date.
new text end

new text begin Subd. 5. new text end

new text begin Remedies; relationship to FCRA. new text end

new text begin (a) A business screening service that
violates this section is liable to the individual who is the subject of the record for a penalty
of $1,000 or actual damages caused by the violation, whichever is greater, plus costs and
disbursements and reasonable attorney fees.
new text end

new text begin (b) A business screening service in compliance with the applicable provisions of the
Fair Credit Reporting Act, United States Code, title 15, section 1681, et seq., is considered
to be in compliance with this section. Those entities are subject to the state remedies under
this subdivision when their actions would violate this section and federal law.
new text end

new text begin Subd. 6. new text end

new text begin Service of process; jurisdiction. new text end

new text begin A business screening service that
disseminates criminal record information in this state or that obtains a criminal record
from a government entity, as defined in section 13.02, or a court in this state is deemed to
have consented to service of process in this state for purposes of section 5.25, subdivision
4, or other applicable law and to the jurisdiction of courts in this state for actions involving
a violation of this section or for the recovery of remedies under this section.
new text end