Minnesota Session Laws - 1993, Regular Session

  
    Laws of Minnesota 1993 

                        CHAPTER 292-H.F.No. 777 
           An act relating to consumers; requiring certain 
          disclosures when consumer reports are used for 
          employment purposes; providing for access to consumer 
          reports; amending Minnesota Statutes 1992, section 
          13C.01, subdivision 1; proposing coding for new law in 
          Minnesota Statutes, chapter 13C; repealing Minnesota 
          Statutes 1992, section 13C.01, subdivision 2. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [13C.001] [DEFINITIONS.] 
    Subdivision 1.  [SCOPE.] The definitions in this section 
apply to this chapter. 
    Subd. 2.  [CONSUMER.] "Consumer" means an individual. 
    Subd. 3.  [CONSUMER REPORT.] (a) "Consumer report" means a 
written, oral, or other communication of information by a 
consumer reporting agency bearing on a consumer's credit 
worthiness, credit standing, credit capacity, character, general 
reputation, personal characteristics, or mode of living that is 
used or expected to be used or collected in whole or in part for:
    (1) the purpose of serving as a factor in establishing the 
consumer's eligibility for credit or insurance to be used 
primarily for personal, family, or household purposes; 
    (2) employment purposes; or 
    (3) other purposes authorized under United States Code, 
title 15, section 1681b. 
    (b) Consumer report does not include: 
    (1) a report containing information solely as to 
transactions or experiences between the consumer and the person 
making the report; 
    (2) an authorization or approval of a specific extension of 
credit directly or indirectly by the issuer of a credit card or 
similar device; or 
    (3) a report in which a person who has been requested by a 
third party to make a specific extension of credit directly or 
indirectly to a consumer conveys a decision with respect to the 
request, if the third party advises the consumer of the name and 
address of the person to whom the request was made and the 
person makes the disclosures to the consumer required under 
United States Code, title 15, section 1681m. 
    Subd. 4.  [CONSUMER REPORTING AGENCY.] "Consumer reporting 
agency" means a person that, for monetary fees, dues, or on a 
cooperative nonprofit basis, regularly engages in whole or in 
part in the practice of assembling or evaluating consumer credit 
information or other information on consumers for the purpose of 
furnishing consumer reports to third parties. 
    Subd. 5.  [EMPLOYMENT PURPOSES.] "Employment purposes" 
means evaluating a consumer for hiring, compensation, promotion, 
reassignment, retention, or with respect to other terms and 
conditions of employment. 
    Subd. 6.  [INVESTIGATIVE CONSUMER REPORT.] "Investigative 
consumer report" means a consumer report in which information on 
a consumer's character, general reputation, personal 
characteristics, or mode of living is obtained through personal 
interviews with neighbors, friends, or associates of the 
consumer or with others with whom the consumer is acquainted or 
who may have knowledge concerning the information.  
"Investigative consumer report" does not include specific 
factual information on a consumer's credit record obtained 
directly from a creditor of the consumer or from a consumer 
reporting agency when the information was obtained directly from 
a creditor of the consumer or from the consumer. 
    Sec. 2.  Minnesota Statutes 1992, section 13C.01, 
subdivision 1, is amended to read: 
    Subdivision 1.  [FEE FOR REPORT.] (a) A consumer who is the 
subject of a credit consumer report maintained by a credit 
consumer reporting agency is entitled to request and receive by 
mail, for a charge not to exceed $8, a copy of the credit 
consumer report once in any 12-month period.  The mailing must 
contain a statement of the consumer's right to dispute and 
correct any errors and of the procedures set forth in the 
federal Fair Credit Reporting Act, United States Code, title 15, 
sections 1681 et seq., for that purpose.  The credit consumer 
reporting agency shall respond to a request under this 
subdivision within 30 days. 
    (b) A consumer who exercises the right to dispute and 
correct errors is entitled, after doing so, to request and 
receive by mail, without charge, a copy of the credit consumer 
report in order to confirm that the credit consumer report was 
corrected. 
    (c) For purposes of this section, the terms "consumer," 
"credit report," and "credit reporting agency" have the meanings 
given them in the federal Fair Credit Reporting Act, United 
States Code, title 15, sections 1681 et seq. 
    Sec. 3.  [13C.02] [DISCLOSURE OF USE OF CONSUMER REPORTS 
FOR EMPLOYMENT PURPOSES.] 
    Subdivision 1.  [DISCLOSURE REQUIRED.] A person may not 
obtain or cause to be prepared a consumer report on a consumer 
for employment purposes unless the person clearly and accurately 
discloses to the consumer that a consumer report may be obtained 
or caused to be prepared.  The disclosure must inform the 
consumer of the right to request additional information on the 
nature of the report under subdivision 3.  In the case of an 
investigative consumer report, the disclosure under this 
subdivision must inform the consumer that the report may include 
information obtained through personal interviews regarding the 
consumer's character, general reputation, personal 
characteristics, or mode of living. 
    Subd. 2.  [FORM; COPY.] The disclosure required under 
subdivision 1 must be in writing and must be provided to the 
consumer before the consumer report is obtained or caused to be 
prepared.  If a written application is provided for employment 
purposes by an employer or prospective employer, the disclosure 
must be included in or accompany the application.  The 
disclosure must include a box that the person may check off and 
return to receive a copy of the consumer report.  If the 
consumer requests a copy of the report, the person requesting 
the report shall request the person preparing the report to 
provide a copy to the consumer.  The report must be sent to the 
consumer by the person preparing the report within 24 hours of 
providing it to the person requesting the report.  The report to 
the consumer must include a statement of the consumer's right to 
dispute and correct any errors and of the procedures under 
United States Code, title 15, section 1681 to 1681t.  A consumer 
may not be charged for a report provided under this section.  If 
no report exists, the consumer reporting agency has no 
obligation to the consumer under this section.  
    Subd. 3.  [FURTHER DISCLOSURE IF REQUESTED.] A consumer 
reporting agency shall, upon written request from the consumer, 
make a complete and accurate disclosure of the nature and scope 
of the report.  The disclosure under this subdivision must be in 
writing and must be mailed or delivered to the consumer within 
five days after the request for the disclosure was received or 
the consumer report was requested, whichever date is later. 
    Subd. 4.  [EXCEPTION.] This section does not apply to: 
    (1) a consumer report to be used for employment purposes 
for which the consumer has not specifically applied; or 
    (2) a consumer report used for an investigation of a 
current violation of a criminal or civil statute by a current 
employee or an investigation of employee conduct for which the 
employer may be liable, until the investigation is completed. 
    Sec. 4.  [13C.03] [NOTICE OF ADVERSE ACTION.] 
    If employment is denied or other adverse action for 
employment purposes is taken against a consumer wholly or partly 
because of information contained in a consumer report, the user 
of the report shall so advise the consumer and notify the 
consumer of the consumer's right to receive a copy of the report 
if a copy was not received pursuant to section 3, subdivision 
2.  The user of the report shall also give the consumer the name 
and address of the consumer reporting agency making the report 
and a notice of the consumer's right to dispute and correct any 
errors and of the procedures under United States Code, title 15, 
section 1681 to 1681t.  Upon written request from the consumer, 
the consumer reporting agency shall provide a copy of the report 
to the consumer within five days of receipt of the request.  A 
consumer may not be charged for a report provided under this 
section. 
    Sec. 5.  [13C.04] [ENFORCEMENT; REMEDIES.] 
    This chapter may be enforced by the attorney general or the 
county attorney pursuant to section 8.31 or 325F.70 and the 
public and private remedies available under those sections apply 
to this chapter. 
    Sec. 6.  [REPEALER.] 
    Minnesota Statutes 1992, section 13C.01, subdivision 2, is 
repealed. 
    Presented to the governor May 17, 1993 
    Signed by the governor May 19, 1993, 4:40 p.m.