CONNOR v. FIRST STUDENT

Appellant’s Request for Judicial Notice

Cal.February 22, 2016

Case No.: $229428 IN THE SUPREME COURT OF THE STATE OF CALIFORNIA EILEEN CONNOR, SUPREME COURT LED FEB 2 2 2016 Plaintiff and Appellant, Vv. Frank A. McGuire Clerk FIRST STUDENT,INC., et al., Deputy Defendants and Respondents After a Decision of the Court of Appeal, Case No. B256075 Second Appellate District, Division Four Appeal from the Superior Court of Los Angeles County Case No. JCCP 4624 Honorable John S. Wiley PLAINTIFF AND APPELLANT EILEEN CONNER’S MOTION FOR JUDICIAL NOTICE; MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT; AND DECLARATION IN SUPPORT HUNTER PYLE, SBN 191125 TANYA TAMBLING,SBN 262979 RACHEL EVANS, SBN 291876 SUNDEEN SALINAS & PYLE 428 13th Street, 8th Floor Oakland, CA 94612 Telephone: (510) 663-9240; Facsimile: (510) 663-9241 hpyle@ssrplaw.com, ttambling@ssrplaw.com, revans@ssrplaw.com TODD F. JACKSON, SBN 202598 CATHA WORTHMAN, SBN 230399 FEINBERG, JACKSON, WORTHMAN & WASOW LLP 383 4th Street, Suite 201 Oakland, CA 94607 Telephone: (510) 269-7998; Facsimile: (510) 839-7839 todd@feinbergjackson.com, catha@feinbergjackson.com Attorneysfor Plaintiffand Appellant Eileen Connor Case No.: 8229428 IN THE SUPREME COURT OF THE STATE OF CALIFORNIA EILEEN CONNOR, Plaintiff and Appellant, V. FIRST STUDENT,INC.,,et al., Defendants and Respondents After a Decision of the Court of Appeal, Case No. B256075 Second Appellate District, Division Four Appeal from the Superior Court of Los Angeles County Case No. JCCP 4624 Honorable John S. Wiley PLAINTIFF AND APPELLANT EILEEN CONNER’S MOTION FOR JUDICIAL NOTICE; MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT; AND DECLARATIONIN SUPPORT HUNTERPYLE, SBN 191125 TANYA TAMBLING, SBN 262979 RACHEL EVANS, SBN 291876 SUNDEEN SALINAS & PYLE 428 13th Street, 8th Floor Oakland, CA 94612 Telephone: (510) 663-9240; Facsimile: (510) 663-9241 hpyle@ssrplaw.com,ttambling@ssrplaw.com, revans@ssrplaw.com TODDF. JACKSON, SBN 202598 CATHA WORTHMAN,SBN 230399 FEINBERG, JACKSON, WORTHMAN & WASOW LLP 383 4th Street, Suite 201 Oakland, CA 94607 Telephone: (510) 269-7998; Facsimile: (510) 839-7839 todd@feinbergjackson.com, catha@feinbergjackson.com Attorneysfor Plaintiffand Appellant Eileen Connor MOTION FOR JUDICIAL NOTICE Pursuant to Evidence Code sections 451, 452 and 459, as well as Rule 8.252 of the California Rules of Court, Plaintiff-Appellant Eileen Connor(“Appellant”) hereby moves the Court to take judicial notice of the documentslisted below. This motion is based upon the declarations of counsel and Jan Raymond attached hereto, and upon the supporting memorandum ofpoints and authorities. Exhibits A through K are true and correct copies of documents obtained by counsel for Appellant that pertain to the legislative history of the Investigative Consumer Reporting Agencies Act (““ICRAA”), Civil Code § 1786 et seq., and the Consumer Credit Reporting Agencies Act (“CCRAA), Civil Code § 1785.1 et seq. Exhibits A through K include copiesof legislative bills and legislative history, as follows: Exhibit A: Assembly Bill No. 600, Chapter 1271, filed with the Secretary of State on October 1, 1975 (1975 enactment of CCRAA); Exhibit B: Assembly Bill No. 601, Chapter 1272, filed with the Secretary of State on October 1, 1975 (1975 enactment of ICRAA); Exhibit C: ~ Assembly Bill No. 601, Enrolled Bill Report, Department of ConsumerAffairs (February 17, 1975); Exhibit D: Senate Bill No. 1454, Chapter 988, filed with the Secretary of State on September30, 1998 (1998 amendments to ICRAA); Exhibit E: Exhibit F: Exhibit G: Exhibit H: Exhibit I: Exhibit J: Exhibit K: Senate Final History of SB 1454; Memorandum to Legislative Counsel from Kevin Smith (December29, 1997); Memorandum to Members, Senate Judiciary Committee (May4, 1998); Letter to the Hon. Pete Wilson, Governor, from Senator Leslie re: SB 1454(September 8, 1998); All versions of SB 1454 as introduced, amended, and finally adopted by the Legislature; Bill analyses from thefiles of the Senate Committee on the Judiciary, the Office of Senate Floor Analyses; the Assembly Committee on ConsumerProtection, Governmental Efficiency, and Economic Development; and the Chaptered Bill File of former Governor Pete Wilson; Assembly Bill No. 655, Chapter 354,filed with the Secretary of State September 27, 2001. In addition, Appellant seeks judicial notice of Exhibits L and M, whichare dockets of federal court cases, as follows: Exhibit L: Exhibit M: February 18, 2016 Civil Docket of Roe v. LexisNexis Risk Solutions, Inc., Civ. No. 12-6284 (C.D. Cal., filed Dec. 17, 2013). Civil Docket of Moran v. the Screening Pros, Court of Appeals Docket No. 12-57245 (9th Cir., filed Dec. 11, 2012). Respectfully submitted, FEINBERG, JACKSON, WORTHMAN & WASOWLLP. By: /s/ Catha Worthman CATHA WORTHMAN,SBN 230399 MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF PLAINTIFF-APPELLANT’S MOTION FOR JUDICIAL NOTICE Pursuant to Evidence Code sections 451, 452, and 459, as well as Rule 8.252 of the California Rules of Court, Appellant moves the Court to take judicial notice of the documents contained in Exhibits A through M, attached hereto. The documentsare bills of the California Legislature, legislative history of California Assembly Bill 601 of 1975 (Enactment of ICRAA)and Senate Bill Number 1454, Chapter 988 (1998 Amendments to ICRAA), as well as the dockets of two federal court cases. These documents are submitted under the declarations of Catha Worthman and Jan Raymondastrue and correct copies ofthe originals.- Under Evidence Code section 459, appellate courts have the same powerto take judicial notice as do thetrial courts. Therefore, appellate courts must take judicial notice of the “(a) [t]he decisional, constitutional, and public statutory law of this state... .” Evid. Code § 451(a). Appellate courts also have the powerto take judicial notice of “[o]fficial acts of the legislative, executive, and judicial departments . . . of any state of the United States.” Evid. Code, § 452(c). Appellate courts further have the powerto take judicial notice of records of “any court of record of the United States ....” Evid. Code § 452(d). Judicial notice of such facts is mandatory upon request where the opposing party is permitted to raise objections and the court has enough information to determinethat the facts comewithin a category subject to proper judicial notice. Evid. Code § 453. A. The Documents in Exhibits A Through M Are Properly theSubject of Judicial Notice. Courts have taken judicial notice of the types of documents set forth as Exhibits A through M,as described below: 1. Exhibits A, B, D, and K Are Public Statutory Law Appropriate for Judicial Notice Under Evidence Code Section 451(a). Pursuant to Evidence Codesection 451(a), Appellant requests that the Court take judicial notice of the following public statutory law of California: Exhibit A: Assembly Bill No. 600, Chapter 1271, filed with the Secretary of State on October 1, 1975 (1975 enactment of CCRAA); Exhibit B: Assembly Bill No. 601, Chapter 1272, filed with the Secretary of State on October 1, 1975 (1975 enactment of ICRAA); Exhibit D: Senate Bill No. 1454, Chapter 988, filed with the Secretary of State on September 30, 1998 (1998 amendments to ICRAA); Exhibit K: Assembly Bill No. 655, Chapter 354,filed with the Secretary of State September 27, 2001, attached as Exhibit E. (2001 Amendments to ICRAA.) Section 45 1(a) provides that judicial notice shall be taken of California’s statutory law. Courts routinely take judicial notice of such documents. Alford v. Superior Court 29 Cal.4th 1033, 1040-41 (2003) (taking judicial notice of two Senate bills and Assembly amendments); 2 Myers v. Phillip Morris Co., 28 Cal.4th 828, 844 (2002) (taking judicial notice of amendmentto Senate bill). Appellant sought judicial notice of Exhibits A, B, D, and K before the Los Angeles Superior Court. 5-JA 22; 8 JA 29.' Respondents did not opposethat request. Indeed, Respondents soughtjudicial notice of some of the same documents. 3 JA 14.1 (Exhibits A-C); 1 JA 8 (Exhibit B). The trial court did not rule on any party’s request. 10 JA 54 (Register of Action). There is enough information for the Court to determine that Exhibits A, B, D and K are documents subject to judicial notice as the law of | California, and the opposing party has had the opportunity to raise objections. Accordingly, judicial notice of these exhibits is appropriate. 2. Exhibit C and Exhibits E Through J Are Legislative History Appropriate for Judicial Notice Under Evidence Code Sections 452(a) and 452(c). Exhibit C and Exhibits E through J contain documentsrelated to the legislative history of ICRAA’s enactment and the 1998 amendments to ICRAA.These documents include the following: Exhibit C: Assembly Bill No. 601, Enrolled Bill Report, Department of Consumer Affairs (February 17, 1975); Exhibit E: Senate Final History of SB 1454; ' Citations to the Joint Appendix (“JA”) are in the format # JA #, wherethe first numberrefers to the volume of the Joint Appendix and the second numberrefers to the tabbed divider within that volume. 3 Exhibit F: Memorandum to Legislative Counsel from Kevin Smith (December29, 1997); Exhibit G: Memorandum to Members, Senate Judiciary Committee (May 4, 1998); Exhibit H: Letter to the Hon. Pete Wilson, Governor, from Senator Leslie re: SB 1454(September8, 1998); ExhibitI: All versions of SB 1454 as introduced, amended, and finally adopted by the Legislature; Exhibit J: Bill analyses from the files of the Senate Committee on the Judiciary, the bill file of the Office of Senate Floor Analyses; the Assembly Committee on ConsumerProtection, Governmental Efficiency, and Economic Development; and the Chaptered Bill File of former Governor Pete Wilson. Evidence Code section 452(a) provides that a court has the powerto take judicial notice of, amongother things “private acts .. . of the Legislature of this state.” Evidence Code section 452(c) provides that a court has the powerto take judicial] notice of, among otherthings, “Tolfficial acts of the legislative [and] executive... departments of .. . any state in the United States.” Underthese sections of the Evidence Code, courts appropriately take judicial notice of California legislative history including the final histories of bills, all versions of a bill, committee analyses, and statements by legislators that bearon legislative intent. Woodbury v. Brown-Dempsey, 108 Cal.App.4th 421, 432-33 (2003) (taking judicial notice of committee analyses and bill history); Post v. Prati, 90 Cal.App.3d 626, 634 (1979) 4 (taking judicial notice offinal legislative history, testimony at public legislative hearings, and correspondence to the Governor’s office from the - legislative analyst, a state agency and an individual legislator); see also California Teachers Ass’n v. San Diego Community College Dist., 28 Cal.3d 692, 698 (1981) (“a legislator’s statement is entitled to consideration whenit is a reiteration of legislative discussion and events leading to adoption of proposed amendmentsrather than merely an expression of personal opinion”). Under these cases, judicial notice of the above- referenced exhibits is appropriate. Appellant and/or Respondents soughtjudicial notice of the above- referenced exhibits in the Los Angeles Superior Court, with no objections from the opposing party. 3 JA 14.1, 14.2; 8 JA 29. There is enough information for the court to determine that Exhibit C and Exhibits E through J are documents subject to judicial notice as private and official acts of the California Legislature, and the opposing party has had the opportunity to raise objections. Accordingly, judicial notice of these exhibits is appropriate. 3. Exhibits L and M Are Civil Dockets of Federal Courts Appropriate for Judicial Notice. The civil dockets in Exhibits L and M are appropriate forjudicial P e s o w a a g R R A 2 a : notice, as well. Evidence Code section 452(d) provides that a court may judicially notice records of “any court of record of the United States .. .” Exhibits L and M are records of federal court cases, as follows: Exhibit L: Civil Docket of Roe v. LexisNexis Risk Solutions, Inc., Civ. No. 12-6284 (C.D. Cal., filed Dec. 17, 2013). Exhibit M: Civil Docket of Moran v. the Screening Pros, Court of Appeals Docket No. 12-57245 (9th Cir. filed Dec. 11, 2012). Judicial notice of these documents is appropriate under Evidence Code section 452(d). Boeken v. Phillip Morris, Inc., 127 Cal.App.4th 1640, 1681 n.23 (2005) (taking judicial notice of United States Supreme Court docket on court’s own motion). B. The Documents Are Relevant to the Issues in This Appeal. Asrequired by Rule 8.252 of the California Rules of Court, the exhibits for which Appellant seeks judicial notice bear on the issues raised on appeal,as reflected in citations to the documents in Appellant’s Opening Brief. Exhibits A through K bear on argumentsrelated to the legislative intent behind the governingstatute in this case, ICRAA.Further, they bear on the legislative intent as to the overlapping relationship between ICRAA and CCRAA.Theseissuesare central to the primary issues on appeal. Exhibits L and M are the dockets of two unpublished federal trial court decisions, cited as for the Court’s reference in relation to Appellant’s argument that these decisions are due no deferencehere. 6 Cc. Conclusion Forall of the foregoing reasons, Appellant respectfully movesthat this Court take judicial notice of Exhibits A through M attached hereto, pursuant to Evidence Codesections 451, 452 and 459. FEINBERG, JACKSON, WORTHMAN & WASOW LLP. By: /s/ Catha Worthman CATHA WORTHMAN,SBN 230399 DECLARATION OF COUNSEL IN SUPPORT OF PLAINTIFF-APPELLANT’S REQUEST FOR JUDICIAL NOTICE I, Catha Worthman, declare: 1. I am an attorney licensedto practice before all courts of the ‘State of California, and a partner at Feinberg, Jackson, Worthman & Wasow LLP,attorneys of record for Plaintiff-Appellant in the above- captioned cases with co-counsel at Sundeen, Salinas & Pyle. 2. I makethis statement based on my personal knowledge. I am prepared and competent to testify to the matters set forth in this declaration. 3. Attachedhereto is a true and correct copy of the Declaration of Jan S. Raymond, datedOctober 10, 2014 (“Raymond Declaration’), containing documentsrelevantto legislative history of the Investigative Consumer Reporting Agencies Act (“ICRAA”), Cal. Civ. Code section 1786 et seq., and the Consumer Credit Reporting Agencies Act (““CCRAA”), Cal. Civ. Code section 1785.1 et seq. 4. Also attached hereto are copies of the following documents for which Plaintiff-Appellant has sought judicial notice. Where documents are contained in the Raymond Declaration, pagination is noted for cross- referencing purposes: Exhibit A: Assembly Bill No. 600, Chapter 1271, filed with the Secretary of State on October 1, 1975 (1975 enactment of CCRAA); Exhibit B: Exhibit C: Exhibit D: Exhibit E: Exhibit F: Exhibit G: Exhibit H: ExhibitI: Exhibit J: Exhibit K: Exhibit L: Assembly Bill No. 601, Chapter 1272, filed with the Secretary of State on October 1, 1975 (1975 enactment of ICRAA); Assembly Bill No. 601, Enrolled Bill Report, Department of Consumer Affairs (February 17, 1975) (Pages 1-4 of Raymond Declaration); Senate Bill No. 1454, Chapter 988, filed with the Secretary of State on September 30, 1998 (1998 amendments to ICRAA); Senate Final History of SB 1454 (Pages 5-6 of Raymond Declaration); Memorandumto Legislative Counsel from Kevin Smith (December 29, 1997) (Pages 7-10 of Raymond Declaration); Memorandum to Members, Senate Judiciary | Committee (May 4, 1998) (Pages 11-14 of Raymond Declaration); Letter to the Hon. Pete Wilson, Governor, from Senator Leslie re: SB 1454(September 8, 1998) (Pages 15-17 of Raymond Declaration); All versions of SB 1454 as introduced, amended, and finally adopted by the Legislature (Pages 19-69 of Raymond Declaration); Bill analyses from the files of the Senate Committee on the Judiciary, the Office of Senate Floor Analyses; the Assembly Committee on ConsumerProtection, Governmental Efficiency, and Economic Development; and the Chaptered Bill File of former Governor Pete Wilson (Pages 71-112 of Raymond Declaration); Assembly Bill No. 655, Chapter 354, filed with the Secretary of State September 27, 2001. Civil Docket of Roe v. LexisNexis Risk Solutions, Inc., Civ. No. 12-6284 (C.D. Cal., filed Dec. 17, 2013), which I personally downloaded from PACER on October 13, 2014. Exhibit M: Civil Docket of Moran v. the Screening Pros, Court of Appeals Docket No. 12-57245 (9th Cir. filed Dec. 11, 2012), which I personally downloaded from PACER on February 18, 2016. I declare underpenalty of perjury under the lawsof the State of California and of the United States that the foregoing is true and correct. Executed this 19th day of February at Oakland, California. By: /s/ Catha Worthman Catha Worthman Attorneyfor Plaintiff-Appellant 10 11 12 13 14 15 16 7 DECLARATION OFJAN S. RAYMOND J, Jan Raymond,declare: 1. lam an attorney licensed to practice by the California State Bar, State Bar number 88703, and admitted to practice in the United States Federal Court for the Eastern District of California. My business is researching the history and intent of legislative and regulatory enactments and adoptions; | have over 20 years experience in research and analysis of legislative and regulatory intent. In cooperation with persons working under my supervision,| undertook to research the following project. Ail use of the word “project”in this declaration refers to legislative research addressed to this focus: Civil Code Section 1786.12 & 1786.52 As added by Chapter 1272 of 1975. 2. Atall times, all persons.working on this project operated underinstructions to locate all documents available pertinent to this adoption. This research was compiled in the days immediately prior to the date of this declaration, and reflects all the documents, and sources, available during that time pertinent to this project. 3. The documentslisted are the substantive documents collected pertinent to the history of this project. The term “substantive documents” as used in the previous sentencerefers to those documents relevant to the scope of the project. Some documents regarding the proposal related to this project may not be forwardedin this report. Documents not forwarded may - include fiscal! analyses addressing the budgetary impact of legislation, documents addressing other portions of the proposal not directly relevant to the project, documents addressing simple support for or opposition to the proposal, or other documents unlikely to be helpful in understanding the substantive purpose of the proposal. The complete collection of documents is organized in generally chronological order and sequentially numbered. 4. The California Legislature historically has not regularly recorded and/or transcribed (888) 676-1947 Declaration of Jan Raymond Page 1 of 5 For definitions of the legislative terms usedin this declaration, visit the California law page at www.naj.net 10 1] 12 13 14 16 17 18 19 20 22 23 24 25 27 committee or floor proceedings. But in recent decades, individual committees have sporadically recorded, and in some casestranscribed, committee proceedings. In addition, a select few committee, and manyfloor, proceedings since the early 1990's are available on videotape. Beginning tn the 2003-2004 session, an effort has been madeto record almostall legislative proceedingsin either audio or video format, although the effort is informal rather than mandated by detailed legislative rules and procedures. The recordings available in all media are uniformly difficult and time-consuming to access, rarely transcribed, and rarely contain substantive discussion that goes beyond the most simple and basic assertions aboutthe legislation in question. In general, the documentary history contains much more detailed discussion of the intent and purposeofthe bill under consideration. Therefore, this report was compiled using documentary sourcesonly. 5. Individual documents may appearin multiple locationsorfiles. We endeavorto obtainonly one copy of the document. Whereit is clearly important, we endeavorto note each source of the documentin this declaration. But some documents for which wecite a single source mayin fact have been found in multiple locations. Where this raises an issue important in individual circumstances,all source locations of particular documents can be identified upon request. 6. All documentslisted are included with this declaration, except as otherwise notedin this declaration. All documents included are true and correct copies of the original documents. Unless otherwise notedin this declaration, all documents were obtained al one of the following sources:legislative offices at the State Capitol, the California State Library, the California State Archives, orlibraries at the University of California at Davis. Referencesto "bill file" as used in this declaration refer to files maintained regarding the legislation that is the subject of the document collection. Some documents copied from microfilm originals may be of poor quality; all copies included with this report are the best available capies. (888) 676-1947 Declaration of Jan Raymond Page 2 of 5 For definitions of the legislative terms usedin this declaration, visit the California law page at www.naj.net tr o 10 1 13 14 15 16 18 19 20 2] 23 24 25 26 7. In this list of documents the abbreviation SFA refers to the Office of Senate Floor Analyses. The following listed documents that accompanythis declaration are true and correct copies: 1975 Chapter 1272 Enrolled Bill Report regarding Assembly Bill 601 as amended September 12, 1975, from the ChapteredBill File of Governor Brown, three pages. Page 1 1998 Chapter 988 Excerpt regarding Senate Bill 1454 from the Senate Final History, 1998 Regular Session. Page 5 Memcrandum and Attachment regarding Senate Bill 1454, as introduced, from thebill file of farmer Senator Tim Leslie, four pages. Page 7 Memorandum and Attachment regarding Senate Bill 1454 as amended April 27, 1998, from the bill file of the Senate Committee on the Judiciary, four pages. Page 11 Letter regarding Senate Bill 1454 as amended August 24, 1998, from the Chaptered bill file of the former Governor Pete Wilson, three pages. Page 15 Excerpt of SB 1454 as introduced on February 2, 1998, asit pertains to Civil Code 1786.12. Page 19 Excerpt of SB 1454 as amended in the Senate on April 27, 1998, as it pertains to Civil Code 1786.12. Page 25 Excerpt of SB 1454 as amendedin the Senate on May 12, 1998, asit pertains to Civil Code 1786.12. Page 33 Excerpt of SB 1454 as amendedin the Assembly on June8, 1998, asit pertains to Civil Code 1786.12. Page 41 Excerpt of SB 1454 as amendedin the Assembly on June 18, 1998,asit pertains to Civil Code 1786.12. Page 51 Excerpt of SB 1454 as amendedin the Assembly on August 24, 1998, asit pertains to Civil Code 1786.12. Page 61 Bill Analyses regarding Senate Biil 1454, from the bill file of the Senate Committee on the Judiciary, seven pages. ; Page 71 Bill Analyses regarding Senate Bill 1454, from the bill file of the SFA, eighteen pages. Page 79 Bill Analyses regarding Senate Bill 1454, from thebill file of the Assembly Committee on ConsumerProtection, nine pages. Page 97 (888) 676-1947 Declaration of Jan Raymond Page 30f5 Fordefinitions of the legislative terms used in this declaration, visit the California law page at www.naj.net 10 1] 12 13 14 15 16 17 Bill Analyses regarding SenateBill 1454, from thebill file of the Chaptered Bill File of former Governor Pete Wilson, six pages. Page 107 This collection ends with page 112 THT text continues on next page MAMMOTH (888) 676-1947 Declaration of Jan Raymond Page 4 of 5 For definitions of the legislative terms used in this declaration, visit the California law page at www.naj.net n N | declare under penalty of perjury the foregoing is true and correct. Executed at Sacramento, California, October 10, 2014. (888) 676-1947 , Declaration of Jan Raymond For definitions of the legislative terms usedin this declaration, visit the California law page at www.naj.net Page 5 of 5 Volume 2 STATUTES OF CALIFORNIA AND DIGESTS OF MEASURES 1975 Constitution of 1879 as Amended General Laws, Amendments to the Codes, Resolutions, and Constitutional Amendments passed by the California Legislature 1975-76 Regular Session 1975-76 First Extraordinary Session 1975~-76 Second Extraordinary Session 1975—76 Third Extraordinary Session Compiled by GEORGE H. MURPHY legislative Counsel 89—3166 Ch. 1271 ] STATUTES OF 1975 3369 CHAPTER1271 An act to add Title 1.6 (commencing with Section 1785.1) to Part 4 of Division 3 of the Civil Code, and to repealTitle 1.6 (commencing with Section 1785.1) of Part 4 of Division 3 of the Civil Code,relating to consumer reporting. [Approved by Governor October 1, 1975 Filed with Secretary of State October 1, 1975] The people of the State of California do enact asfollows: SECTION 1. Title 16 (commencing with Section 1785.1) is added to Part 4 of Division 3 of the Civil Code, to read: TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT CHAPTER ]. GENERAL PROVISIONS 1785.1. The Legislature finds and declares as follows: (a) An elaborate mechanism has been developedfor investigating and evaluating the credit worthiness, credit standing, credit capacity, and general reputation of consumers. (b) Consumercredit reporting agencies have assumed vital role in assembling and evaluating consumercredit and other information on consumers. (c) There is a need to insure that consumer credit reporting agencies exercise their grave responsibilities with fairness, impartiality, and a respect for the consumer’s right to privacy. (d) It is the purpose ofthis title to require that consumercredit reporting agencies adopt reasonable procedures for meeting the needs of commerce for consumercredit, personnel, insurance, and other information in a manner which is fair and equitable to the consumer, with regard to the confidentiality, accuracy, relevancy, and properutilization of such information in accordance with the requirements ofthistitle. (e) The Legislature hereby intends to regulate consumercredit reporting agencies pursuantto this title in a manner which will best protect the interests of the people of the State of California. 1785.2. This act may be referred to as the Consumer Credit Reporting Agencies Act. 1785.3. The following termsas usedin this title have the meaning expressed in this section: (a) The term “person” means any individual, partnership, corporation, trust, estate, cooperative, association, government or governmental subdivision or agency, or other entity. (b) The term “consumer” means a natural individual. (c) The term “consumer credit report’? means any written, oral, 2 0600 202270 730 3370 STATUTES OF CALIFORNIA [ Ch. 1271 or other communication of any information by a consumerreporting agency bearing on a consumer's credit worthiness, credit standing, or credit capacity, which is used or is expected to be used, or collected in whole or in part, for the purpose of serving as a factor in establishing the consumer’s eligibiity for: (1) credit or insurance to be used primarily for personal, family, or household purposes, or (2) employment purposes, or (3) other purposes authorized in Section 1785.11. The term doesnotinclude: (1) any report containing information solely as to transactions or experiences between the consumer and the person making the report, or (2) any authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card or similar device, or (3) any report by a person conveying a decision whether to make a specific extension of credit directly or indirectly to a consumerin response to a request by a third party, if the third party advises the consumerof the name and address of the person to whom the request was made and such person makes the disclosures to the consumer required under Section 1785.20, or (4) any report containing information solely on a consumer’s character, general reputation, personal characteristics, or modeofliving which is obtained through personal interviews with neighbors, friends, or associates of the consumer reported on, or others with whom heis acquainted or who may have knowledge concerning any such items of information. (d) The term “consumer credit reporting agency” means any person who, for monetery 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, but does not include any governmental agency whoserecords are maintained primarily for traffic safety, Jaw enforcement, or licensing purposes. {e) The term “file” when used in connection with information on any consumer, means all of the information on that consumer recorded and retained by a consumer credit reporting agency regardless of how the information is stored. (f) The term “employment purposes”, when used in connection with a consumercredit report, means a report used for the purpose ofevaluating a consumerfor employment, promotion, reassignment, or retention as an employee. 1785.4. Nothing in this title shall apply to any person licensed pursuant to the provisions of Chapter 11 (commencing with Section 7500) of Division 3 of the Business ard Professions Code, or to any employee of such person, unless such person is employed directly by a consumer credit reporting agency. 3 0600 202285 733 Ch. 1271] STATUTES OF 1975 337) CHAPTER 2. OBLIGATIONS OF CONSUMER CREDIT REPORTING AGENCIES 1785.10. Every consumer credit reporting agency shall, upon request and proper identification of any consumer, allow the consumer to visually inspect all files maintained regarding such consumerat the time of the request. (a) All items of information shall be available for inspection, including the sources of information. (b) The consumercredit reporting agencyshall also disclose the recipients of any consumercredit report on the consumerwhich the consumercredit reporting agency has furnished: (1) For employment purposes within the two-year period preceding the request. (2) For any other purpose within the six-month period preceding the request. 1785.11. A consumercredit reporting agency shall only furnish a consumer credit report under the following circumstances: (a) In response to the orderof a court having jurisdiction to issue such an order. ~ (b) In compliance with a lawful subpoenaissued by a court of competentjurisdiction. (c) In accordance with the written instructions of the consumer to whom it relates. (d) To a person which it has reason to believe: (1) Intends to use the information in connection with a credit transaction, or entering or enforcing an orderofa court ofcompetent jurisdiction for support, involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer; or (2) Intends to use the information for employment purposes; or (3) Intends to use the information in connection with the underwriting of insurance involving the consumer,the rate for such insurance, or for insurance claims settlements; or (4) Intends to use the information in connection with a determination of the consumer’s eligibility for a license or other benefit granted by a governmental instrumentality required by Jaw to consider the applicant’s financial responsibility or status; or (5) Otherwise has a legitimate business need for the information in connection with a business transaction involving the consumer. 1785.12. Notwithstanding the provisions of Section 1785.11, a consumer credit reporting agency may furnish to a governmental agency a consumer's name, address, former address, places of employment, or formerplaces of employment. 1785.13. (a) Except as authorized under subdivision (b) no consumer credit reporting agency shall make any consumercredit report containing any of the following items of information: (1) Bankruptcies which, from the date of adjudication, antedate the report by more than 14 years. 0600 202295 735 3372 STATUTES OF CALIFORNIA [ Ch. 1271 (2) Suits from the date offiling and paid judgments which from the date of entry antedate the report by more than sevenyears. (3) Unpaid judgraents which,from the date ofentry, antedate the report by more than 10 years. (4) Paid tax liens which, from the date of payment, antedate the report by more than seven years. (5) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years. (6) Records of arrest, indictment, information, misdemeanor complaint, or conviction of a crime which, from the date of disposition, release, or parole, antedate the report by more than seven years. Such items of information shall no longer be reported if at any timeit is learnedthat in the case ofa conviction a full pardon has been granted,or in the case ofan arrest, indictment, information, or misdemeanor complaint a conviction did not result. (7) Any other adverse information which antedates the report by more than seven years. (b) The provisionsofsubdivision (a) are not applicable in the case of any consumer credit report to be used in the following transactions: (1) A credit transaction involving, or which may reasonably be expected to involve, a principal amountoffifty thousand dollars ($50,000) or more. (2) The underwriting of life insurance, involving or which may reasonably be expected to involve, an amount of one hundred thousand dollars ($100,000) or more. (3) The employmentof any individual at an annual salary which equals, or may reasonably be expected to equal, thirty thousand dollars ($30,000) or more. 1785.14. (a) Every consumer credit reporting agency shall maintain reasonable procedures designed to avoid violations of Section 1785.13 and to limit furnishing of consumer credit reports to the purposes listed under Section 1785.11. These procedures shall require that prospective users of the information identify themselves, certify the purposes for which the information is sought andcertify that the information will be used for no other purposes. From the effective date of this act the consumercredit reporting agency shall keep a record of the purposes as stated by the user. Every consumer credit reporting agency shall make a reasonable effort to verify the identity of a new prospective user and the uses certified by such prospective user prior to furnishing such user a consumer report. No consumercredit reporting agency mayfurnish a consumer credit report to any person unless it has reasonable groundsfor believing that the consumercredit report will be used by such person for purposeslisted in Section 1785.11. (b) Whenever a consumer credit reporting agency prepares a consumer credit report, it shall follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual abou! whom thereportrelates. “5 0600 202310 738 Ch. 1271 } STATUTES OF 1975 3373 1785.15. (a) A consumer credit reporting agency shall supply files and information required underSection 1785.10 during normal business hours and on reasonable notice. (b) Files maintained on a consumershall be madeavailable for the consumer’s visual inspection,as follows: (1) In person, if he appears in person and furnishes proper identification. A copy of his file shall also be available to the consumerfor a fee. (2) By mail, if he makes a written request, with proper identification,for copies to be sent to a specified addressee, and pays a fee sufficient to cover costs of reproduction. Consumer credit reporting agencies complying with requests for mailings underthis section shall not be liable for disclosures to third parties caused by mishandling of mail after such mailings leave the consumercredit reporting agencies. (3) A summaryofall information containedin files on a consumer and required to be provided by Section 1785.10 shall be provided by telephone,if the consumer has madea written request, with proper identification for telephone disclosure, and thetoll charge,if any, for the telephonecall is prepaid by or charged directly to the consumer. (c) The term “proper identification” as used in subdivision (b) shall mean that information generally deemed sufficient to identify a person. Such information includes documents such as a valid driver’s license, social security account number, military identification card, and credit cards. Only if the consumeris unable to reasonably identify himself with the information described above, may a consumer credit reporting agency require additional information concerning the consumer’s employmentandpersonalor family history in order to verify his identity. (d) The consumercredit reporting agency shall provide trained personnel to explain to the consumerany information furnished him pursuant to Section 1785.10. (e) The consumercredit reporting agencyshall provide a written explanation of any coded information contained in files maintained on a consumer. This written explanation shall be distributed whenevera file is provided to a consumerfor visual inspection as required underSection 1785.15. (f) The consumershall be permitted to be accompanied by one other person of his choosing, who shall furnish reasonable identification. A consumer credit reporting agency may require the consumerto furnish a written statement granting permission to the consumercredit reporting agency to discuss the consumer’sfile in such person’s presence. 1785.16. (a) If the completeness or accuracy of any item of information containedinhisfile is disputed by a consumer, and such dispute is conveyeddirectly to the consumercredit reporting agency by the consumer,the consumercredit reporting agency shall within a reasonable period of time reinvestigate and record the current status of that information unless it has reasonable groundsto believe _ : 0600 202325 741 1 O o 3374 STATUTES OF CALIFORNIA { Ch. 1271 that the dispute by the consumeris frivolous or irrelevant. If the consumer credit reporting agency determines that the dispute is frivolous or irrelevant, it shall notify the consumerin writing within five days after such determination is made that it will not reinvestigate the item of information. In this notification, the consumercredit reporting agencyshallstate the specific reasons why it has determined that the consumer's dispute is frivolous or irrelevant. If a reinvestigation is made and,after reinvestigation, the disputed item of information is found to be inaccurate or can no longer be verified, the consumer credit reporting agency shall promptly delete such information from the consumer'sfile and shall notify the consumer that such information has been deleted. The presence of information in the consumer's file that contradicts the contention of the consumershall not, in and of itself, constitute reasonable grounds for believing the dispute is frivolous or irrelevant. (b) If the consumercredit reporting agency determinesthat the dispute is frivolous or irrelevant, or if the reinvestigation does not resolve the dispute, the consumer mayfile a brief statementsetting forth the nature of the dispute. The consumer credit reporting agency may limit such statements to not more than 100 wordsifit provides the consumer with assistance in writing a clear summary of the dispute. (c) Whenevera statementofdisputeis filed, the consumercredit reporting agencyshall, in any subsequent consumercredit report containing the information in question, clearly note that the information is disputed by the consumer and shall include in the report either the consumer’s statement or a clear and accurate summary thereof. {d) Following the deletion of information from a consumer'sfile pursuant to subdivision (a), or following the filing of a dispute pursuant to subdivision (b), the consumercredit reporting agency shall, at the request of the consumer, furnish notification that the item of information has been deletedorthat the item ofinformation is disputed. In the case of disputed information, the notification shall include the statement or summaryofthe dispute filed pursuant to subdivision (b). Such notification shal be furnished to any person, specifically designated by the consumer, whohas, within two years priorto the deletionorthe filing of the dispute, received a consumer credit report concerning the consumer for employment purposes, or whohas, within six monthsof the deletion orthefiling of the dispute, received a consumercredit report concerning the consumerfor any other purpose,if such consumercredit reports contained the deleted or disputed information. The consumercredit reporting agencyshall] clearly and conspicuously disclose to the consumerhis rights to make a request for notification. Such disclosure shall be made at or prior to the time the information is deleted or the consumer’s statement regarding the disputed information is received. 1785.17. A consumer credit reporting agency shall make all 7 ~ 0600 202335 743 Ch. 1271] STATUTES OF 1975 3375 disclosures pursuant to Sections 1785.10 and 1785.15 and furnishall consumer reports pursuant to Section 1785.16 without charge to the consumerif, within 30 days after receipt by such consumer of a notification pursuant to Section 1785.20 or notification from a debt collection agency affiliated with such consumer credit reporting agencystating that the consumer’s credit rating may be or has been adversely affected, the consumer makes a request under Section 1785.15 or 1785.16, Otherwise, the consumercredit reporting agency may impose a reasonable charge on the consumer for making disclosure to such consumer pursuant to Section 1785.15, the charge for which shall be indicated to the consumer prior to making disclosure; andfor furnishing notifications, statements, summaries, or codifications to persons designated by the consumer pursuant to Section 1785.16, the charge for which shall be indicated to the consumerprior to furnishing such information andshall not exceed the charge that the consumercredit reporting agency would impose on each designated recipient for a consumer report except that no charge may be madefor notifying such persons of the deletion of information which is found to be inaccurate or which can no longer be verified. , 1785.18. (a) Each consumer credit reporting agency which compiles and reports items for information concerning consumers which are matters of public record shall specify in any report containing public record information the source from which such information was obtained, including the particular court, if there be such, and the date that such information was initially reported or publicized. (b) A consumer reporting agency which furnishes a consumer report for employment purposes and which for that purpose compiles and reports items of information on consumers which are matters ofpublic record and are likely to have an adverse effect upon a consumer’s ability to obtain employmentshall in addition maintain strict procedures designed to insure that whenever public record information whichis likely to have an adverse effect on a consumer's ability to obtain employment is reported it is complete and up to date. For purposes of this paragraph,items of public record relating to arrests, indictments, convictions, suits, tax liens, and outstanding judgmentsshall be consideredupto dateif the current public record status of the item at the time of the report is reported. CHAPTER 3. REQUIREMENTS ON USERS OF CONSUMER CREDIT REPORTS 1785 20. (a) Whenevercredit or insurance for personal, family, or household purposes, or employment involving a consumeris denied or the charge for such credit or insuranceis increased either wholly or partly because of information contained in a consumer credit report from a consumer credit reporting agency, the user of the consumer credit report shall so advise the consumer against 30 0600 202345 745 3376 STATUTES OF CALIFORNIA [ Ch. 1271 whom such adverseaction has been taken and supply the name and address or addresses of the consumer credit reporting agency making the report. (b) Whenever credit or insurance for personal, family, or household purposesinvolving a consumeris denied or the charge for such credit is increased either wholly or in part because of information obtained from a persor other than a consumercredit reporting agency bearing upon consumer's credit worthiness or credit standing, the user of such information shall, within a reasonable period of time, and upon the consumer’s written request for the reasonsfor suck adverse action received within 60 days after learning of such adverseaction, disclose the nature and substance of the information to the consumer. The user of such information shall clearly and accurately disclose to the consumer his right to make such written request at the time such adverse action is communicated to the consumer. (c) No personshall beheld liable for any violation of this section if he shows by a preponderanceof the evidence thatat the time of the alleged violation he maintained reasonable procedures to assure compliance with the provisions of subdivisions (a) and (b) of this section. CHAPTER 4. REMEDIES 1785.30. (a) Any consumer credit reporting agency or user of information which neg-igently fails to comply with any requirement underthis title with respect to a consumercredit reportis liable to the consumer whois the subject of the report in an amount equal to the sum ofall the following: (1) Any actual damages sustained by the consumeras a result of the failure or, except in the case of class actions, three hundred dollars ($300), whichever sum is greater, and (2) In the case of any successful action to enforce anyliability under this title, the costs of the action together with reasonable attorney’s fees as determined by the court. (b) If the court determines that the violation was grossly negligent or willful, the court may, in addition, assess, and the consumer may recover punitive damages. (c) Notwithstanding subdivision (a), a consumercredit reporting agency or user of information which fails to comply with any requirementunderthis title with respect to a consumercredit report shall not be liable to a consumer whois the subject of the report wherethe failure to comply results in a more favorable consumer credit report than if there had not beena failure to comply. 1785.31. “Except as provided in Section 1785.30, no consumer may bring any action or proceeding in the nature of defamation, invasion of privacy or negligence with respect to the reporting of information against any consumer reporting agency, any user of information, or any person whofurnishes information to a consumer 0600 202360 748 Ch. 1272 ] STATUTES OF 1975 3377 reporting agency, based on information disclosed pursuantto Section 1785.10, 1785.15 or 1785.20 ofthis title, except as to false information furnished with malice or willful intent to injure such consumer. 1785.32. An action to enforce any liability created under this chapter may be brought in any appropriate court of competent jurisdiction within two years from the date on which theliability arises except that where a defendant has materially and willfully misrepresented any information required under this chapter to be disclosed to a consumerand the information so misrepresented is material to the establishment of the defendant's liability to the consumerunderthis chapter, the action may be broughtat any time within two years after the discovery by the consumer of the misrepresentation. 1785.33. (a) Any consumer credit reporting agency or user of information against whom an action brought pursuant to Section 1681n or 1681oof Title 15 of the United States Code is pendingshall not be subject to suit for the same act or omission under Section 1785.30. (b) The entry of a final judgment against a consumer credit reporting agency or user of information in an action brought pursuantto the provisions of Section 1681n or 16810ofTitle 15 of the United States Code shall be a bar to the maintenance of any action based on the sameact or omission which might be brought underthis chapter. 1785.34. This title does not apply to any consumercredit report which by its terms is limited to disclosures from public records relating to land and land titles and does not apply to any person whose records and files are maintained for the primary purpose of reporting those portions of the public records which impart constructive notice under the law of matters relating to land and landtitles. SEC. 2. Title 1.6 (commencing with Section 1785.1) of Part 4 of Division 3 of the Civil Code is repealed. CHAPTER 1272 Anactto add Title 1.6A (commencing with Section 1786) to Part 4 of Division 3 of the Civil Code, relating to consumer reporting. (Approved by Governor October 1, 1975 Filed with Secretary of State October 1, 1975.) The people of the State of California do enact as follows: SECTION 1. Title 16A (commencing with Section 1786) is added to Part 4 of Division 3 of the Civil Code, to read: 10 - 0601 202390 754 - Volume 2 STATUTES OF CALIFORNIA AND DIGESTS OF MEASURES 1975 Constitution of 1879 as Amended General Laws, Amendments to the Codes, Resolutions, and Constitutional Amendments passed by the California Legislature 1975-76 Regular Session 1975-76 First Extraordinary Session 1975-76 Second Extraordinary Session 1975-76 Third Extraordinary Session Compiled by GEORGE H, MURPHY legislative Counsel 89-3166 Ch. 1272} STATUTES OF 1975 3377 reporting agency, based on information disclosed pursuant to Section 1785.10, 1785.15 or 1785.20 of this title, exceptas to false information furnished with malice or willful intent to injure such consumer. 1785.32. An action to enforce any liability created under this chapter may be brought in any appropriate court of competent jurisdiction within two years from the date on which theliability arises except that where a defendant has materially and willfully misrepresented any information required underthis chapter to be disclosed to a consumer and the information so misrepresented is material to the establishment of the defendant’s liability to the consumerunderthis chapter, the action maybe broughtat any time within two years after the discovery by the consumer of the misrepresentation. . .1785.33. (a) Any consumer credit reporting agency or user of information against whom an action brought pursuant to Section 1681n or 16810 of Title 15 of the United States Code is pendingshall not be subject to suit for the same act or omission under Section 1785.30. (b) The entry of a final judgment against a consumer credit reporting agency or user of information in an action brought pursuantto the provisionsof Section 1681n or 16810 of Title 15 of the United States Code shall be a bar to the maintenance of any action based on the sameactor omission which might be brought underthis chapter. 1785.34. This title does not apply to any consumercredit report which by its terms is limited to disclosures from public records relating to land and land titles and does not apply to any person whose records and files are maintained for the primary purpose of reporting those portions of the public records which impart constructive notice under the law of matters relating to land and land titles. SEC. 2. Title 1.6 (commencing with Section 1785.1) of Part 4 of Division 3 of the Civil Code is repealed. CHAPTER 1272 An act to add Title 1.6A (commencing with Section 1786) to Part 4 of Division 3 of the Civil Code, relating to consumer reporting. {Approved by Governor October 1, 1975. Filed with Secretary of State October 1, 1975.] The people of the State of California do enact as follows: SECTION 1. Title 1.6A (commencing with Section 1786) is added to Part 4 of Division 3 of the Civil Code, to read: 3378 STATUTES OF CALIFORNIA [ Ch. 1272 TITLE 1.6A. INVESTIGATIVE CONSUMER REPORTING AGENCIES , Article 1. General Provisions 1786. The Legislature finds and declares as follows: (a) Investigative consumer reporting agencies have assumed a vital role in assembling and evaluating information on consumersfor employment and insurance purposes. tb) There is a need to insure that investigative consumer reporting agenciesexercise their grave responsibilities with fairness, impartiality, and a respect for the consumer’s right to privacy. (c) It is the purpose of this title to require that investigative - consumer reporting agencies adopt reasonable procedures for meeting the needs of commerce for employment and insurance information in a mannerwhichis fair and equitable to the consumer, withregard to the confidentiality, accuracy, relevancy, and proper ‘utilization of such information in accordance with the requirements of this title. (d) The Legislature hereby intends to regulate investigative consumerreporting agencies pursuantto this title in a manner which willbest protect the interests of the people of the State of California. 1786.1. This title may be referred to as the Investigative Consumer Reporting Agencies Act. 1786.2. The following termsas used in this title have the meaning expressed in this section: (a) The term “person” means any individual, partnership, corporation, trust, estate, cooperative, association, government or governmental subdivision or agency, or otherentity. (b) The term “consumer” means a natural individual who has madeapplication to a person for employmentpurposesor insurance for personal, family, or household purposes. ~ (c) The term “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 consumerreported on, or others with whom heis acquainted or who may have knowledge concerning any such items ofinformation. Such information shall 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 such information was obtained directly from a creditor of the consumer or. from the consumer. (d) The term “investigative consumer reporting agency” means any person who, for monetary fees or dues, regularly engages in whole or in part in the practice of assembling or evaluating employment or insurance information, or both, concerning consumers for personal, family, or household purposes, for the purposes of furnishing investigative consumer reports to third 3 Ch.1272] STATUTES OF 1975 3379 parties, to be used with respect to consumers for employment purposes or insurance primarily for personal, family, or household purposes, but does not include any governmental agency whose records are maintained primarily for traffic safety, law enforcement, or licensing purposes,or a private investigatorlicensedin this state or employees of such a private investigator. (e) The term “file” when used in connection with information on any consumer, means all of the information on that consumer recorded and retained by an investigative consumer reporting agency regardless of how the informationis stored. (f) The term “employment purposes”, when used in connection with an investigative consumer report, means a report used for the purpose of evaluating a consumer for employment, promotion, reassignment, or retention as an employee. (g) The term “medical information” means information on a person’s medical history or condition obtained directly from such person or another person related to such person and acting on his behalf by an application, or questionnaire, or by a similar means,or obtained directly or indirectly from a licensed physician, medical practitioner, hospital, clinic, or other medical or medically related facility. Article 2. Obligations of Investigative Consumer Reporting Agencies 1786.10. Every investigative consumer reporting agency shall, upon request and proper identification of any consumer,allow the consumer to visually inspect all files maintained regarding such consumer at the time of the request, except that medical information, as defined in subdivision (g) of Section 1786.2 may be withheld. The consumer shall be informed by the investigative consumer reporting agency of the existence of any such medical information withheld and shall have a right to visually inspect such information upon written authorization from the consumer’s attending physician. The investigative credit reporting agencyshall inform the consumerof the consumer's right to visually inspect such withheld information at the time the consumer makes a request to inspectall files pursuant to this section. (a) All items of information shal! be available for inspection, except that the sources of information need not be disclosed. However, in the event an action is brought underthis title such sources shall be available to the consumer under appropriate discovery procedures in the court in which the action is brought. Nothing in this title shall be interpreted to mean that investigative consumer reporting agencies are required to divulge to consumers the sources of investigative consumer reports except in appropriate discovery proceduresas outlined herein. _ (b) The investigative consumer reporting agency shall also disclose the recipients of any investigative consumer report on the 4 3380 STATUTES OF CALIFORNIA { Ch. 1272 consumer which the investigative consumer reporting agency has furnished: (1) For employmentor insurance purposes within the two-year period preceding the request. (2) For any other purpose within the six-month period preceding the request. 1786.12. An investigative consumer reporting agencyshall only furnish an investigative consumer report under the following circumstances: , (a) In responseto theorderof a court havingjurisdictionto issue such an order. (b) In compliance with a lawful subpoena issued by a court of competent jurisdiction. (c) In accordance with the written instructions of the consumer to whom it relates. (a) To a person which it has reasonto believe: (1) Intends to use the information for employment purposes; or (2) Intends to use the information serving as a factor in determining a consumer’s eligibility for insurance, the rate for such insurance, or for insurance claims settlements; or (3) Intends to use the information in connection with a determination of the consumer’s eligibility for a license or other benefit granted by a governmentalinstrumentality required by law to consider the applicant’s financial responsibility or status. (4) Intends to use the information in connection with an order of a court of competent jurisdiction to provide support where the imposition or enforcementof the order involves the consumer, 1786.14. Notwithstanding the provisions of Section 1786.12 an investigative consumer reporting agency may furnish to a governmental agency a consumer’s name,address, former address, places of employment, or former places of employment. 1786.16. A person shall not procure or cause to be prepared an investigative consumer report unlessall of the following conditions are met: (a) If an investigative consumer report may be sought in connection with the underwritingofinsurance,it shall be clearly and accurately disclosed in writing on the application form,binder, or similar document signed by the consumer that an investigative consumer report regarding the consumer’s character, general reputation, personal characteristics, and mode of living may be made.If no signed application form, binder, or similar documentis involved in the underwriting transaction, such disclosure shall be made to the consumerin a writing mailed or otherwise delivered to the consumer notlater than three days after the report wasfirst requested. (b) If, at any time, an investigative consumerreport is sought in conjunction with an application for employment purposes, the person procuring or causing the report to be madeshall, not later than three days after the date on which the report was first 5 Ch. 1272] STATUTES OF 1975 3381 . requested, notify the consumer in writing that an investigative consumer report regarding the consumer’s character, general reputation, personal characteristics, and modeofliving will be made. This notification shall include the name of the consumerreporting agency conductingthe investigation and a summaryofthe provisions of Section 1786.22. (c) The provisions of subdivision (b) shall not apply to an investigative consumer report procured by an employersolely for the purpose ofdetermining whether a person currently in his employ is engaged in any criminal activitylikely to result in aloss to the employer. 1786.18. (a) Except as authorized under subdivision (b) no investigative consumer reporting agency shall make any investigative consumerreport containing any of the following items of information: (1) Bankruptcies which, from the date of adjudication, antedate the report by more than 14 years. . (2) Suits from the dateof filing and paid judgments which from the date of entry antedate the report by more than seven years. (3) Unpaidjudgments which, from thedateofentry, antedate the report by more than 10 years. (4) Paid tax liens which, from the date of payment, antedate the report by more than seven years. (5) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years. (6) Records of arrest, indictment, information, misdemeanor complaint, or conviction of a crime which, from the date of disposition, release, or parole, antedate the report by more than seven years. Such items of information shall no longer be reported if at any timeit is learned that in the case of a conviction a full pardon has been granted,or in the case ofan arrest, indictment, information, or misdemeanor complaint a conviction did not result, except that records of arrest, indictment, and information misdemeanor complaints may be reported pending pronouncement of judgment on the particular matter subject of such records. (7) Any other adverse information which antedates the report by more than seven years. , (b) The provisions of subdivision (a) are not applicable in the case of any consumerreport to be used in the following transactions: (1) The underwriting of life insurance, involving or which may reasonably be expected to involve, an amount of one hundred thousand dollars ($100,000) or more. (2) The employmentof any individual at an annual salary which equals, or may reasonably be expected to equal, thirty thousand dollars ($30,000) or more. 1786.20. (a) Every investigative consumer reporting agency shall maintain reasonable procedures designed to avoid violations of ‘Section 1786.18 and to limit furnishing of investigative consumer reports to the purposes listed under Section 1786.12. These 6 3382 STATUTES OF CALIFORNIA [ Ch. 1272 procedures shall require that prospective users of the information identify themselves, certify the purposes for which the information is sought and certify that the information will be used for no other purposes. From the effective date of this title the investigative consumer reporting agency shall keep a record of the purposesas stated by the user. Every investigative consumer reporting agency shall make a reasonable effort to verify the identity of a new prospective user andthe usescertified by such prospective userprior to furnishing such user any consumer reports. No investigative consumerreporting agency may furnish any investigative consumer reports to any person unlessit has reasonable groundsfor believing that the investigative consumerreports will be used by such person for purposes listed in Section 1786.12. (b) Whenever an investigative consumer reporting agency prepares an investigative consumerreport,it shall follow reasonable procedures to assure maximum possible accuracyof the information concerning the individual about whom the report relates. 1786.22. (a) An investigative consumer reporting agency shall supply files and information required under Section 1786.10 during normal business hours and on reasonable notice. (b) Files maintained of a consumershall be madeavailable for the consumer’s visual inspection, as follows: (1) In person, if he appears in person and furnishes proper identification. A copy of his file shall also be available to the consumer for a fee. (2) By certified mail, if he makes a written request, with proper identification; for copies to be sent to a specified addressee. Investigative consumerreporting agencies complying with requests for certified mailings under this section shall not be liable for disclosures to third parties caused by mishandling ofmail after such mailings leave the investigative consumer reporting agencies. (3) A summaryofall information contained in files on a consumer and required to be provided by Section 1786.10 shall be provided by telephone,if the consumer has madea written request, with proper identification for telephonedisclosure,and the toll charge,if any, for the telephonecall is prepaid by or charged directly to the consumer. (c) The term “proper identification” as used in subdivision (b) shall mean that information generally deemed sufficient to identify a person. Such information includes documents such as a valid driver’s license, social security account number, military identification card, and credit cards. Only if the consumeris unable to reasonably identify himself with the information described above, may an investigative consumer reporting agency require additional information concerning the consumer’s employmentand personal or family history in order to verify his identity. (d) The investigative consumer reporting agency shall provide trained personnel to explain to the consumer any information furnished him pursuant to Section 1786.10. (e) The investigative consumerreporting agency shall provide a 7 Ch, 1272 ] STATUTES OF 1975 3383 written explanation of any coded information containedin files maintained on a consumer. This written explanation shall be distributed whenevera file is provided to a consumerfor visual inspection as required under Section 1786.22, (f) The consumershall be permitted to be accompanied by one other person of his choosing, who shall furnish reasonable identification. An investigative consumer reporting agency may ~ require the consumer to furnish a written statement granting permission to the consumer reporting agency to discuss the consumer’s file in such person’s presence. . 1786.24. (a) If the completeness or accuracy of any item of information containedin his file is disputed by a consumer, and such dispute is conveyeddirectly to the investigative consumer reporting agency by the consumer, the investigative consumer reporting agency shall within a reasonable period of time reinvestigate and record the currentstatus of that information unless it has reasonable grounds to believe that the dispute by the consumeris frivolousor irrelevant. If the investigative consumer reporting agency determines that the dispute is frivolous orirrelevant,it shall notify the-consumerin writing within five days after such determinationis madethat it will not reinvestigate the item of information. In this notification, the investigative consumerreporting agentyshall state the specific reasons why it has determined that the consumer’s dispute is frivolous or irrelevant. If a reinvestigation is made and, after reinvestigation, the disputed item of information is found to be inaccurate or can no longer be verified, the investigative consumer reporting agency shall promptly delete such information from the consumer’sfile and shall notify the consumer that such information has been deleted. The presence of informationin the consumer’sfile that contradicts the contention of the consumershall not, in and of itself, constitute reasonable grounds for believing the dispute is frivolous or irrelevant. (b) If the investigative consumer reporting agency determines that the dispute is frivolous or irrelevant, or if the reinvestigation does not resolve the dispute, the consumer mayfile a brief statement setting forth the nature of the dispute. The investigative consumer reporting agency maylimit such statements to not more than 100 words if it provides the consumer with assistance in writing a clear summaryof the dispute. (c) Whenever a statement of dispute is filed, the investigative ‘consumer reporting agency shall, in any subsequent investigative consumerreport containing the information in question, clearly note that the information is disputed by the consumer andshall include in the report either the consumer’s statementor a clear and accurate summary thereof. (d) Following the deletion of information from a consumer’sfile pursuant to subdivision (a), or following the filing of a dispute pursuant to subdivision (b), the investigative consumer reporting agencyshall, at the request of the consumer,furnish notification that 3” 3384 STATUTES OF CALIFORNIA [ Ch. 1272 the item of information has been deleted or that the item of information’ is disputed. In the case of disputed information, the notification shall include the statement or summary of the dispute filed pursuant to subdivision (b). Such notification shall be furnished to any person, specifically designated by the consumer, whohas, within two years prior to the deletion or the filing of the dispute, receivedan investigative consumerreport concerning the consumer for employment purposes, or who has, within six ‘months of the deletion or the filing of the dispute, received an investigative consumer report concerning the consumerfor any other purpose,if such investigative consumer reports contained the deleted or disputed information. The investigative consumer reporting agency shallclearly andconspicuously disclose to the consumerhis rights to make a requestfor notification. Such disclosure shall be made at or prior to the time the information is deleted or the consumer’s statement regarding the disputed information is received. 1786.26. An investigative consumerreporting agency shall make all disclosures pursuantto Sections 1786.10 and 1786.22 and furnishall consumer reports pursuantto Section 1786.24 without charge to the consumer if, within 30 days after receipt by such consumer of a notification pursuant to Section 1786.40 stating that adverse action may ‘be or has been taken on the consumer, the consumer makes a request under Section’ 1786.27 or 1786.24. Otherwise, the investigative consumer reporting agency may impose a reasonable charge on the consumer for making disclosure to such consumer pursuant to Section 1786.22 as it relates to providing a copy of the report to the consumer, the charge for which shall be indicated to the consumer prior to making disclosure; and for furnishing notifications, statements, summaries, or codifications to person designated by the consumer pursuantto Section 1786.24 the charge for whichshall be indicated to the consumerprior to furnishing such information and shall not exceed the charge that the investigative consuiner reporting agency would impose on each designated recipient for a: consumer report except that no charge may be made for notifying such persons of the deletion of information which is foundto be inaccurate or which can nolonger be verified. 1786.28. (a) Each investigative consumer reporting agency which compiles and reports items of information concerning consumers which are matters of public record shall specify in any report containing public record information the source from which such infermation was obtained, including the particular court, if there’ be such, and the date that such information was initially reported or publicized. (b) A consumerreporting agency which furnishes a consumer report for employment purposes and which for that purpose compiles and reports items of information on consumers which are matters ofpublic record andarelikely to have an adverse effect upon a consumer’s ability to obtain employmentshall in addition maintain strict procedures designed to insure that whenever public record 9 Ch. 1272} - STATUTES OF 1975 3385 information whichis likely to have an adverse effect on a consumer’s ability to obtain employmentis reportedit is complete and up to date. For purposesofthis paragraph, items of public recordrelating to arrests, indictments, convictions,suits, tax liens, and outstanding judgments shall be considered up to dateifthe current public record status of the item at the time of the report is reported. 1786.30. Whenever an investigative consumer reporting agency prepares an investigative consumer report, no adverse information - in the report (other than information which is a matter of public record, the status of which has been updated pursuant to Section 1786.28 may be included in a subsequent investigative consumer report unless such adverse information has been verified in the process of making such subsequent consumerreport, or the adverse _ information wasreceived within the three-month period preceding the date the subsequentreportis furnished. Article 3. Requirements on Users of Investigative Consumer Reports 1786.40. (a) Whenever insurance for personal, family, or household purposes, or employmentinvolving a consumeris denied or the charge for such insuranceis increased either wholly or partly because of information contained in an investigative consumer report from an investigative consumer reporting agency, the user of the investigative consumer report shall so advise the consumer against whom such adverse action has been taken and supply the name and address of the investigative consumer reporting agency making the report. (b) Whenever insurance for personal, family, or household purposes involving a consumeris denied or the charge for such insuranceis increased either whollyorin part because of information obtained from a person other than an investigative consumer reporting agency bearing upon the consumer’s general reputation, personal characteristics or mode of living, the user of such information shall, within a reasonable period of time, and upon the consumer’s written request for the reasons for such adverse action received within 60 days after learning of such adverse action,disclose the nature and substance of the information to the consumer. The user of such information shall clearly and accurately disclose to the consumerhis right to make such written request at the time such adverse action is communicated to the consumer. The user may withhold the substance of such medical information, as defined in subdivision (g) of Section 1786.2, but shall inform the consumerof the existence of any such medical information withheld. The consumer shall have a right to be informed in writing of the substance of such information upon written authorization from the consumer’s attending physician. The usershall inform the consumer of the consumer’s right to be informed in writing of the substance of such withheld information at the time of disclosure pursuantto this subdivision. 113-—3166 0601 202505 777 10 3386 STATUTES OF CALIFORNIA [ Ch. 1272 Article 4. Remedies 1786.50. (a) Any investigative consumer reporting agency or user of information which fails to comply with any requirement underthis title with respect to an investigative consumer report is liable to the consumer whois the subject of the report in an amount equal to the sum ofall the following: a (1) Any actual damagessustained by the consumeras result of the failure or, except in the case of class actions, three hundred dollars ($300), whichever sum is greater, and (2) In the case of any successful action to enforce anyliability underthis chapter, the costs of the action together with reasonable attorney’s fees as determined bythe court. (b) If the court determines that the violation was grossly negligent or willful, the court may, in addition, assess, and the consumer may recover punitive damages. (c) Notwithstanding subdivision (a), an investigative consumer -reporting agencyoruser of information whichfails to comply with any requirement underthis title with respect to an investigative consumerreport shall not be liable to a consumer whois the subject” of thereport wherethefailure to comply results in a more favorable investigative consumer reportthanif there had not beena failure to comply, . 1786.52. Nothing in this chapter shall in any wayaffect the right of any consumer to maintain an action against an investigative consumer reporting agency, a user of an investigative consumer report, or an informant for invasion of privacy or defamation. An action to enforce anyliability created underthis title may be brought in any appropriate court of competent jurisdiction within two years from the date on which theliability arises except that where a defendanthas materially and willfully misrepresented any information required underthis title to be disclosed to a consumer and the information so misrepresented is material to the establishmentof the defendant’s liability to the consumer underthis title the action may be broughtat any time within twoyears after the discovery by the consumerof the misrepresentation. (a) Any investigative consumer reporting agency or user of information against whom an action brought pursuant to Section 1681n or 16810 of Title 15 of the United States Code is pending shall not be subject to suit for the same act or omission under Section 1786.50. (b) The entry of a final judgment against the investigative consumer reporting agency or user of information in an action brought pursuantto the provisions of Section 1681n or 1681lo of Title 15 of the United States Code shall be a bar to the maintenance of any action based on the same act or omission which might be brought underthis title. 11 Ch. 1273 ] STATUTES OF 1975 3387 1786.54. This title does not apply to any investigative consumer report which byits termsis limited to disclosures from public records relating to land and landtitles or whichis a report issued preliminary to the issuanceofa policy oftitle insurance, and it does not apply to any person whose records are maintained for the primary purpose of reporting those portions of public records which impart constructive notice underthe law of matters relating to land and jand titles and which may be issued as the basis for the issuance of a policy of title insurance. 1786.56. If any provision of this act or the application thereof to any person or circumstancesis held invalid, such invalidity shall not affect other provisions or applications of the act which can be given effect without the invalidprovision or application, andto this end the provisions of this act are severable. CHAPTER 1273 An act to amend Section 18613 of, and to add Section 18056.1 to, the Health and Safety Code,relating to inspection of mobilehomes. {Approved by Governor October1, 1975. Filed with Secretary of State October 1, 1975.] The people of the State of California do enact as follows: SECTION 1. Section 18056.1 is added to the Health and Safety Code, to read: 18056.1, The commission shall adopt such regulations for the inspection of mobilehomes under construction as it determines are reasonably necessary to assure compliance with this part and the regulations promulgated under this part. Such regulations shall include the inspection of the construction, assembly, andinstallation of parts and components which will subsequently be enclosed within the floor, walls, ceiling, or roof of the mobilehome. An insignia of approval shall notbe affixed to any new mobilehome unless such mobilehome has been inspected by the department while under construction pursuant to the regulations of the commission under this section. SEC. 2. Section 18613 of the Health and Safety Code is amended to read: 18613. On andafter July 1, 1974, a permit shall be obtained from the enforcement agency each time a mobilehome, whichis required to be moved undera permit,is to be located or installed on anysite for the purpose of human habitation or occupancy as a dwelling. The contractor engagedto install the mobilehomeshall obtain the permit, except when the owner of the mobilehome proposes to perform the installation. When a contractor applies for a permit to install a mobilehome,he shal] display a valid contractor’s license. The 12 oye : a Let Ora8. Max: 8 is.-| sponsored by the Department of Consumer“Affairs,sith! om ‘|-to both credit reparting and ‘investi; ative Teparting2 ; ng 83; been divided this year into two proposals, AB 600 and’AB 601,"the first,deal mith credit reparting“sgencies, the second with investigative reporting.agencies.: Both were Grafted inan effort to'remedy Oovious deficiencies ih the Laws delineating obligatians of consumer reporting agencies | regarding accuracy ani disclosure of informtim. . : Find>;deletions by <<. * * * >>. Changesin tables are made but not highlighted. CHAPTER 988 S.B. No. 1454 CONSUMER LAW—INVESTIGATIVE REPORTING AN ACTto amend Sections 1786.2, 1786.10, 1786.12, 1786.16, 1786.18, 1786.20, 1786.24, 1786.26, 1786.30, 1786.40, and 1786.50 of, and to add Section 1786.11 to, the Civil Code, relating to investigative consumerreporting. [Approved by Governor September 29, 1998.] [Filed with Secretary of State September 30, 1998.] LEGISLATIVE COUNSEL'S DIGEST SB 1454, Leslie. Investigative consumer reporting. Existing law, as containedin the Investigative Consumer Reporting Agencies Act, regulates the preparation, disclosure, and use of investigative consumerreports. Existing law defines an “investigative consumerreport”as a report in which specified information on a consumeris obtained through personalinterviews and defines an “invesligative consumerreporting agency”as any person who,fora fee, assembles employmentor insurance information,or information relating to the hiring of dwelling units concerning consumers for 3rd parties for specified purposes. This bill would redefine an “investigative consumer report” as a report in which specified consumerinformation is obtained by any means, subject to an exception, and an “investigative consumer reporting agency” as any person who,for a fee, assembles any information concerning consumersfor 3rd parties. Existing law generally provides that a person may not obtain an investigative consumerreport with respect to a consumer unless the person discloses in writing to the consumerthat the report will be made and provides other specified information. This bill would require, as a further condition to obtaining an investigative consumerreport, that the person certify to the agency that he or she (1) has made the required consumer disclosures and (2) will provide additional specified disclosures if requested by the consumer. The bill would also require an investigative consumer reporting agency that provides an investigative consumer report to a person other than the consumer to make a copy ofthat report available to the consumer, as specified, for at least 60 daysafter the date the report is provided to the other person. Existing law provides that consumers have theright to visually inspectall files maintained by an investigative consumer reporting agency regarding that consumer, except medical information,as defined. Existing law also provides that consumers have the right to be informed bythe user of consumer information of the reasons for any adverse action taken with respect to specified insurance due to information obtained from a person other than an investigative consumer reporting agency, except that the user may withhold medical information, as defined, until the consumer obtains written authorization from the consumer's physician. B WiestlawNext © 2043 Tharnsgn Reuters Noclainto original US. Gavernment Works. 1 CONSUMER LAW—INVESTIGATIVE REPORTING,1998 Cal. Legis. Serv. Ch. 988... This bill would delete both of these exceptions relating to medical information. It would also prohibit an investigative consumer reporting agency from fumishing an investigative consumer report containing that defined medical information without the consumer's consent. Existing law provides that invesligative consumerreports may not include, amongotherthings,any arrest records, unlawful detainer actions unless the lessor was theprevailing party, as specified, paid tax liens, or other specified items that untedate the report by more than 7 years. This bil} would revise the prohibition against inclusion of unlawful detainer actions and specify that information relating to an arrest, indictment, conviction, civil action, tax lien, or outstandingjudgment may notbe included in a report unless verified by the agency no more than 30 daysprior to the date of the report, and adverse information obtained through a personal interview, as specified, may not be included in a report unlessit is either verified by a 2nd party or the intervieweeis the best source ofthe information. Existing law gives consumersthe right to dispute inaccurate information contained in an investigative consumerreport and to bring an action to recover damagesfor violations of the act in an amountequal to the greater of actual damages or $300. This bill would add newprocedures and notice requirementsrelating to the investigation of disputes by consumers and the deletion of information in a consumer'sfile that is determined to be inaccurate. The bill would also increase the minimum amount of damages recoverable by a consumerfor violations of the act from $300 to $2,500. Existing law specifies that reasonable charges may be imposed upon a consumerto receive a copy of an investigative consumer report relating to that consumer, unless the copy is requested after the taking of an adverse action against the consumerbased on the report, as specified. This bill would specify the amountoffee, if any, that may be charged to a consumerto receive a copy ofan investigative consumerreport or other disclosures relating to that consumer. The bill would require investigative consumer reporting agencies to provide a consumerwith a copy ofhis or her investigative consumerreport, free of charge, not more often than once a year, if the consumeris unemployed, is seeking employment, receives public welfare assistance, or believesthat his or her file contains inaccurate information dueto fraud. The bil] would makeother related changes. The people ofthe State of California do enactas follows: SECTION 1. Section 1786.2 of the Civil Code is amendedto read: << CA CIVIL § 1786.2 >> 1786.2. The following terms asusedin this titte have the meaning expressedin this section: (a) The term “person” means any individual, partnership, corporation,limited liability company,trust,estate, cooperative, association, governmentor governmental subdivision or agency,or other entity. The term “person”as usedin this title shall not be construed to require duplicative reporting by any individual, corporation,trust, estate, cooperative, association, government, or governmental subdivision or agency, or other entity involved in the same transaction. (b) The term “consumer” means a natural individual who has made application to a person for employment purposes, for insurance for personal, family, or household purposes,orthe hiring of a dwelling unit, as defined in subdivision (c) of Section 1940. (c) The term “investigative consumerreport” means a consumerreport in which information on a consumer's character, general reputation. personal characteristics, or modeofliving is obtained through <<-* * *->><>. The term does not include a consumer report or other compilation of information <> is limited to specific factual information relating to a consumer's credit record or mannerofobtaining credit obtained directly from a creditor of the consumeror from a consumer reporting agency when that information was obtained directly from a potential or existing creditor of the consumer or from o o N ) €: 2013 Thorason Reuters. No clairn to original U.S. Governinent Works. 2 CONSUMER LAW—INVESTIGATIVE REPORTING,1998 Cal. Legis. Serv. Ch. 988... the consumer. <<+Notwithstanding the foregoing, for transactions between investigative consumer reporting agencies and insurance institutions, agents, or insurance-support organizations subject to Article 6.6 (commencing with Section 791) of Chapter | of Part 2 of Division ] of the Insurance Code, the term “investigative consumer report” shall have the meaningset forth in subdivision (n) of Section 791.02 of the Insurance Code.+>> (d) The term “investigative consumerreporting agency” means any person who,for monetary fees or dues, regularly engages in whole orin partin the practice of assembling or evaluating <<-* * *->>information <<-* * *->> concerning consumers for <<.* * *_>>the purposes of furnishing investigative consumerreports to third parties, <<-* * *->>but does not include any governmental agency whoserecords are maintained primarily fortraffic safety, law enforcement, or licensing purposes, or <<- * * +_>>anylicensed insurance agent, insurance broker,or solicitor, insurer, or life insurance agent. (e) The term “file,” when used in connection with information on any consumer, meansall of the information on that consumer recorded andretainedby an investigative consumerreporting agency regardless of how the informationis stored. (f) The term “employment purposes,” when used in connection with an investigative consumer report, meansa report used for the purpose of evaluating a consumer for employment, promotion, reassignment, or retention as an employee. (g) The term “medicalinformation” meansinformation on a person's medicalhistory or condition obtained directlyor indirectly froma licensed physician, medical practitioner, hospital, clinic, or other medical or medically related facility. SEC. 2. Section 1786.10 of the Civil Code is amended to read: << CA CIVIL § 1786.10 >> 1786.10. <<+(a)+>> Every investigative consumer reporting agency shall, upon request and properidentification of any consumer, allow the consumerto visually inspect all files maintained regarding <<+thet+>> consumerat the time of the request<<-* * #->>, ~ <<+(b)+>> All items of information shall be available for inspection, except that the sources of information <> need not be disclosed. However, <<-* * #->><<+if+>> an action is brought underthis title<<-* * *->><<+, those+>> sources shall be available to the consumerunder appropriate discovery proceduresin the court in which the action is brought. Nothingin this title shall be interpreted to mean that investigative consumer reporting agencies are required to divulge to consumersthe sourcesofinvestigative consumerreports except in appropriate discovery procedures as outlined herein. <<+(c)+>> The investigative consumer reporting agency shall also <<+ identify+>> the recipients of any investigative consumerreport on the consumer <<+thatt+>> the investigative consumerreporting agency has furnished: (1) For employmentorinsurance purposes within the two-year period preceding the request. (2) For any other purpose within the <<+one-yeart+>> period preceding the request. <<+(d) The identification of a recipient under subdivision (c) shall include the name of the recipientor, if applicable, the trade name (written in full) under which the recipient conducts business and, upon request of the consumer, the address and telephone numberofthe recipient.+>> <<+(e) The investigative consumerreporting agency shall also disclose the dates,original payees, and amountsofany checksor charges upon whichis based any adverse characterization of the consumer, includedinthefile at the time ofthe disclosure.+>> SEC. 3. Section 1786.11 is added to the Civil Code, to read: << CA CIVIL § 1786.11 >> 1786.11. Every investigative consumerreporting agencythat provides an investigative consumer report to a person other than the consumershall make a copyofthat report available, upon request and properidentification, to the consumerfor at least 60 days after the date that the report is provided to the other person. SEC.4. Section 1786.12 of the Civil Code is amendedto read: << CA CIVIL § 1786.12 >> 1786.12. An investigative consumerreporting agencyshall only furnish an investigative consumer report underthe following circumstances: (a) In response to the order of a court having jurisdiction to issue <<-* * *->><<+thct+>> order. WestlaviNext © 2013 Thornsan Reuters. No claim to origina! US. Government Works. 3 CONSUMER LAW—INVESTIGATIVE REPORTING,1998 Cal. Legis. Serv. Ch. 988... (b) In compliance with a lawful subpoenaissued by a court of competentjurisdiction. (c) In accordance with the written instructions of the consumer to whom it relates. (d) To a person <<+thal+>> it has reason to believe: (1) Intendsto use the information for employment purposes; or (2) Intends to use the information serving as a factor in determining a consumer's eligibility for insuranceorthe rate for << +any+>> insurance; or (3) Intendsto use the information in connection with a determination of the consumer's eligibility for a license or other benefit granted by a governmentalinstrumentality required by law to consider the applicant's financial responsibility or status; or (4) Intends to use the information in connection with an order of a court of competent jurisdiction to provide support where the imposition or enforcement ofthe order involves the consumer, or (5) Intendsto use the information in connection with the hiring ofa dwelling unit, as defined in subdivision (c) of Section 1940. <<+(e) An investigative consumer reporting agency shall not prepare or furnish an investigative consumer report to a person described in subdivision (d) unless the agency hasreceived the certification under paragraph (4) of subdivision (a) of Section 1786.16 from the person requesting the report.+>> <<+(f) An investigative consumer reporting agency shall not furnish an investigative consumer report to a person described in subdivision (d) if that report contains medicalinformation about a consumer, unless the consumerconsents to the furnishing of the report.+>> SEC. 5. Section 1786.16 of the Civil Code is amended to read: << CA CIVIL § 1786.16 >> 1786.16. (a) Any person described in subdivision (d) of Section 1786.12 shall not procure or cause to be prepared an investigative consumerreport unless the following applicable conditions are met: (1) If an investigative consumer report is sought in connection with the underwriting of insurance,it shall be clearly and accurately disclosed in writing at the time the application form, medical form, binder, or similar documentis signed by the consumerthat an investigative consumer report regarding the consumer's character, general reputation, personal characteristics, and modeofliving may be made.If no signed application form, medical form, binder, or similar documentis involved in the underwriting transaction, <<+the+>> disclosure shall be made to the consumer in <<-* * *->>writing <> mailed or otherwise delivered to the consumernotlater than three days after the report wasfirst requested. (2) If, at any time, an investigative consumerreport is sought for employment purposesother than promotionor reassignment, the person procuring or causing the report to be madeshall, not later than three days after the date on which the report” wasfirst requested, notify the consumerin writing that an investigative consumer report regarding the consumer's character, general reputation, personal characteristics, and modeofliving will be made. This notification shall include the name ofthe << +investigative+>> consumerreporting agency conducting the investigation and a summary ofthe provisions of Section 1786.22. (3) If an investigative consumerreport is sought in connection with the hiring of a dwelling unit, as defined in subdivision (c) of Section 1940, the person procuring or causing the request to be madeshall, notlater than three daysafter the date on which the report wasfirst requested, notify the consumerin writing that an investigative consumerreport will be made regarding the consumer's character, general reputation, personal characteristics, and mode ofliving. The notification shall also include the name and address of the <<+ investigative+>> consumer reporting agency <<+ that+>> will prepare the report. <<+(4) The person procuring or causing the request ta be made shall certify to the investigative consumerreporting agency that the person has madethe applicable disclosuresto the consumer required bythis subdivision andthat the person will comply with subdivision (b).+>> <<+(b) Anyperson described in subdivision (d) of Section 1786.12 shall, upon written request made by the consumer within a reasonable period of time after the receipt by the consumerofthe disclosure required by subdivision (a), make a complete and accurate disclosure ofthe nature and scopeof the investigation requested. This disclosure shal] be madein writing and mailed or otherwise delivered to the consumernot Jater than five days after the date the request for the disclosure was received from the consumeror the report wasfirst requested, whicheveris later.+>> <<+(¢)+>> The provisions of subdivision (a) shall not apply to an investigative consumerreport procured or caused to be prepared by an employerif the purpose ofthe employeris to <<-* * +_>><<+d+>>etermine whether <<-* * *->><<+toretain WestlawNext €: 2013 Thoinson Reuters. No claimto original US. Government Works. 4 CONSUMER LAW-—INVESTIGATIVE REPORTING, 1998 Cal. Legis. Serv. Ch. 988... +>> an employee <<-* * *->><<+whenthere is a good faith belief that the+>> employecis cngaged in any criminalactivity likely to result in a Joss to the employer. <<+(d)+>> Those persons described in subdivision (d) of Section 1786.12 ofthis title shall constitute the sole and exclusive class of persons who maycause aninvestigative consumer report to be prepared. SEC.6. Section 1786.18 of the Civil Code is amendedto read: << CA CIVIL § 1786.18 >> 1786.18. (a) Except as authorized under subdivision (b)<<+,+>> no investigative consumer reporting agency shall make << +or furnish+>> anyinvestigative consumerreport containing any of the following items ofinformation: (1) Bankruptcies <<+that+>>, from the date of adjudication, antedate the report by more than <<+10+>> years. (2) Suits <<+that,+>> from the date of filing<<+,+>> andsatisfied judgments <<-* * *->><<+that,+>> from the date of entry<<-+,1>> antedate the report by more than seven years. (3) Unsatisfied judgments <<+that+>>, from the date of entry, antedate the report by more than <> years. (4) Unlawful detainer actions <<-* * *->><<+where the defendant+>> wasthe prevailing party <<-* * *->><> the action is resolved bysettlement agreement<<-* * *->>. (5) Paid tax liens <<+that+>>, from the date of payment, antedate the report by more than seven years. (6) Accounts placedfor collection or charged to profit and loss <<+ thatt+>> antedate the report by more than seven years. (7) Recordsofarrest, indictment, information, misdemeanor complaint, or conviction of a crime <<+thatt>>, from the date of disposition, release, or parole, antedate the report by more than seven years. <<+These+>> items of information shall no longer be reportedif at any time it is [earned that<<+,+>> in the case of a conviction<<+,+>> a full pardon has been granted<<- * # #>> or<<+,t>> in the case ofan arrest, indictment, information, or misdemeanor complaint<<+,+>> a conviction did not result<<+;+>> except that records of arrest, indictment, <<-* * *->> information<<+, ort+>> misdemeanor complaints may be reported pending pronouncementofjudgment onthe particular subject matter of <<+thoset+>> records. (8) Any other adverse information <<+that+>> antedates the report by more than seven years. (b) The provisions of subdivision (a) are not applicable in the case of any <<+investigative+>> consumer report to be used in the following transactions: (1) The underwriting oflife insurance<<-* * *->> involving<<+,+>> or <<+that+>> may reasonablybe expected to involve, an amount of one hundred <<+fifiy+>> thousand dollars ($<<+150,000+>>) or more. (2) The employmentof anyindividual at an annual salary <<+that+>> equals, or may reasonably be expected to equal, << +seventy-five+>> thousand dollars ($<<+75,000+>>) or more. (3) The rental of a dwelling unit <<+that+>> exceeds <<+twot>> thousand dollars ($<<+2,000+>>) per month. <<+(c) Except as otherwise provided in Section 1786.28, an investigative consumer reporting agency shall not furnish an investigative consumerreport that includes information thatis a matter of public record and that relates to an arrest, indictment, conviction, civil judicial action, tax lien, or outstanding judgment, unless the agencyhasverified the accuracyofthe information during the 30-dayperiod ending on the date on whichthe report is furnished.+>> <<+(d) An investigative consumerreporting agencyshall not prepareor furnish an investigative consumerreport on a consumer that contains informationthat is adverse to the interest of the consumerandthat is obtained through a personalinterview with a neighbor, friend, or associate of the consumeror with another person with whom the consumeris acquainted or’ who has knowledgeof the ilem ofinformation, unless either (1) the investigative consumerreporting agencyhas followed reasonable procedures (o obtain confirmation ofthe information, from an additional source that has independent and direct knowledge of the information, or (2) the personinterviewed is the best possible source of the information.+>> SEC.7. Section 1786.20 of the Civil Code is amendedto read: << CA CIVIL § 1786.20 >> 1786.20. (a) Every investigative consumerreporting agency shall maintain reasonable procedures designcd to avoid violations of Section 1786.18 and to limit furnishing of investigative consumer reports <<+for+>> the purposeslisted under Section 1786.12. These procedures shall require that prospective users of the information identify themselves, ccrtify the purposes for which the information is sought and <<-* * *->>that the information will be used for no other purposes<<+, and make 20113 Thomson Reviers. No claim to original U.S. Government Works. : 5 a n WestlawNext € CONSUMER LAW-—INVESTIGATIVE REPORTING, 1998 Cal. Legis. Serv. Ch. 988... the certifications described in paragraph (4) of subdivision (a) of Section 1786.16+>>. From the effective date ofthis tile<< +,4>> the investigalive consumer reporting agency shall keep a record ofthe purposes <<+for which information is sought, +>> as stated by the user. Every investigative consumer reporting agency shall make a reasonable effort to verify the identity of a newprospective user and the uses certified by <<+the+>> prospective user prior to furnishing <<+thet+>> user any << +investigativet>> consumer reports. No investigative consumer reporting agency may furnish any investigative consumer reportsto any person unlessit has reasonable groundsfor believing that the investigative consumer reports will be used by << +that+>> person for purposeslisted in Section ] 786.12. (b) Wheneveran investigative consumerreporting agency prepares an investigative consumerreport,it shall follow reasonable procedures to assure maximumpossible accuracyofthe information concerning the individual about whom the report relates. <<+(c) An investigative consumerreporting agency shall not make an inquiry for the purpose of preparing an investigative consumer report on a consumer for employment purposesif the making of the inquiry by an employeror prospective employer of the consumer would violate any applicable federal or state equal employmentopportunity law or regulation.+>> SEC.8. Section 1786.24 of the Civil Code is amendedto read: << CA CIVIL § 1786.24 >> 1786.24. (a) If the completeness or accuracyof any item of information contained in his <> file is disputed by a consumer, and <<+ the+>> dispute is conveyed directly to the investigative consumer reporting agency by the consumer, the investigative consumer reporting agency shall<<-* * *->><<+, without charge,t>> reinvestigate and record the current status of <<-* * *->><<+the disputed+>> information <<-* * *->><<+or deletet>> the item <<-* * *->><<+ from the file in accordance with subdivision (c), before the end of the 30-day period beginningon the date on which the agency receives the notice of the dispute from the consumer+>>. <<+(b) The agency shall notify any person whoprovided information in dispute at the address and in the manner specified bythat person. Thenotice shall includeall relevant information regarding the dispute that the investigative consumerreporting - agency has received from the consumer. The agency shall also promptly provide to the person whoprovided the information in dispute all relevant information regarding the dispute that is received by the agency from the consumer during the reinvestigation.+>> <<+(c) In conducting a reinvestigation, the investigative consumerreporting agencyshall review and consider all relevant information submitted by the consumerwith respect to the disputed item of information.+>> <<+(d) Notwithstanding subdivision (a), an investigative consumer reporting agency may terminate a reinvestigation of information disputed by a consumerif the investigative consumerreporting agency reasonably determines that the dispute is frivolousor irrelevant, including by reason ofafailure by a consumerto provide sufficient informationto investigate the disputed information. Upon making a determination that a dispute is frivolous orirrelevant, the investigative consumer reporting agency shall notify the consumer, by mail or, ifauthorized by the consumerfor that purpose, by any other meansavailable to the agency. +>> In this notification, the investigative consumerreporting agencyshall stale the specific reasons whyit has determinedthat the consumer's disputeis frivolous or irrelevant <<+and provide a description of any information required to investigate the disputed information, that may consist of a standardized form describing the general nature of the required information.t>> <<+(e)+>> Ifa reinvestigation is made and, afier reinvestigation, the disputed item of informationis found to be inaccurate<<- * * *l>><<+, incomplete, or cannot+>> beverified <<+by the evidence submitted+>>, the invesligalive consumer reporting agencyshall promptly delete <> information from the consumer's file <<+or modify the information, as appropriate, based onthe results ofthe reinvestigation,+>> and shall notify the consumer that <<+thet+>> information has been deleted << +or modified+>>. <<+(t) No information maybe reinserted in a consumer's file after having been deleted pursuant to this section unless the person whofurnished the information verifies that the information is complete and accurate. If any information deleted from a consumer's file is reinserted in the file, the investigative consumerreporting agency shall promptly notify the consumer of the reinsertion in writing or, if authorized by the consumerfor that purpose, by any other meansavailable to the agency. As part of, or in additionto, this notice, the investigative consumerreporting agency shall provide to the consumer in writing (1) a statement that the disputed information hasbeen reinserted, (2) the name, address, and telephone numberof any furnisher of information contacted orthat contacted the investigative consumer reporting agencyin connection with the reinsertion, and the telephone numberofthe furnisher, if reasonably available, and (3) a notice that the consumer has the right to a reinvestigation a o VwestlawNext ©: 2073 Thomson Reuters. No clain to original US. Governman: Works. 6 CONSUMER LAW--INVESTIGATIVE REPORTING, 1998 Cal. Legis. Serv. Ch. 988... of the information reinserted by the investigative consumer reporting agency and to add a statement tohis orherfile disputing the accuracy or completenessof the information.+>> / <<+(g) An investigative consumerreporting agency shall provide notice to the consumerofthe results ofany reinvestigation underthis section by mail or, if authorized bythe consumerfor that purpose, by other meansavailableto the agency. Ihe notice shall include (1) a statementthat the reinvestigation is completed, (2) an investigative consumerreport that is based on the consumer'sfile as thatfile is revised as a result ofthe reinvestigation, (3) a description or indication of any changes madein the investigative consumerreport as a result of thoserevisions to the consumer'sfile, (4) a notice that, if requested by the consumer, a description of the procedure used to determine the accuracy and completeness of the information shall be provided to the consumerby the investigative consumer reporting agency, including the name, business address, and telephone numberofany furnisher of information contacted in connection with that information, (5) a notice that the consumerhas the right to add a statement to the consumer's file disputing the accuracy or completeness of the information, and (6) a notice that the consumer has the right to requestthat the investigative consumerreporting agency furnish notifications under subdivision (k).+>> <<+(h)+>> The presence ofinformation in the consumer'sfile that contradicts the contention of the consumershall not, in and ofitself, constitute reasonable groundsfor believing the dispute is frivolousorirrelevant. <<+{i)+>> If the investigative consumer reporting agency determines that the dispute is frivolous orirrelevant, or if the reinvestigation does not resolve the dispute, <<+orifthe informationis reinserted into the consumer'sfile pursuantto subdivision (f),4>> the consumer mayfile a brief statement setting forth the nature of the dispute. The investigative consumer reporting agency may limit <<+these+>> statements to not more than 100 wordsif it provides the consumer with assistance in writing a clear summary ofthe dispute. <<+(j)+>> Whenevera statementof dispute is filed, the investigative consumer reporting agency shall, in any subsequent investigative consumer report containing the information in question, clearly note that the information is disputed by the consumerand shall include in the report cither the consumer's statementor a clear and accurate summarythereof. <<+(k)+>> Following the deletion of information from a consumer's file pursuant to <<-* * *->><>, or following the filing of a dispute pursuant to subdivision <<+(i)+>>, the investigative consumerreporting agencyshall, at the request of the consumer, furnish notification that the item of information has been deleted orthat the item of information is disputed. In the case of disputed information,the notification shall include the statement or summary ofthe dispute filed pursuant to subdivision <<+(i). Thist>> notification shall be furnished to any person,specifically designated by the consumer, whohas, within two years prior to the deletion orthefiling of the dispute, received an investigative consumerreport concerning the consumer for employment purposes, or whohas, within <<-* * *->><<+one yeart>> ofthe deletion orthe filing of the dispute, received an investigative consumerreport concerning the consumerfor any other purpose,if<<+these+>> investigalive consumerreports contained the deleted or disputed information. The investigative consumer reporting agencyshall clearly and conspicuously disclose to the consumer his <<+or her+>> rights to make a request for <<+this+>> notification.<<-* * *->> <<+(I) An investigative consumer reporting agencyshall maintain reasonable procedures designed to prevent the reappearance in a consumer's file and in investigative consumerreports information that has been deleted pursuant to this section and not reinserted pursuantto subdivision (f).+>> <<+(m) If the consumer's dispute is resolved by deletion of the disputed information within three business days, beginning with the day the investigative consumer reporting agency receives notice of the dispute in accordance with subdivision(a), the investigalive consumer reporting agency shall be exempt from requirements for further action under subdivisions(g),(i), and (j), if the agency: (1) provides promptnotice ofthe deletion to the consumerby telephone,(2) provides written confirmation of the deletion and a copyofan investigative consumerreport ofthe consumerthatis based on the consumer'sfile after the deletion, and (3) includes, in the telephone notice or in a written notice that accompaniesthe confirmationand report, a statementof the consumer's right to request under subdivision (k) that the agencyfurnish notifications underthat subdivision.+>> <<+(n) Anyinvestigative consumerreporting agencythat compiles and maintainsfiles on consumerson a nationwidebasis, as defined in the federal Fair Credit Reporting Act, as amended (15 U.S.C. Sec. 1681 ct seq.), shall implement an automated sysiem through which furnishers ofinformation to that agency mayreport the results of a reinvcstigation that finds incomplete or inaccurate information in a consumer'sfile to other investigative consumerreporting agencics.+>> <<+(o) All actionsto be taken byan investigative consumer reporting agency underthis section arc governed bythe applicable time periodsspecified in Section 611 of the federal Fair Credit Reporting Act, as amended (15 U.S.C. Sec. 1681i).+>> SEC.9. Section 1786.26 of the Civil Code is amendedto read: awNext © 2013 Tharnson Reuters. No ciaim ta original U.S. Gavernment Works. 7 ° . 7 CONSUMER LAW—INVESTIGATIVE REPORTING, 1998 Cal. Legis. Serv. Ch. 988... << CA CIVIL § 1786.26 >> 1786.26. <<+(a)+>> An investigative consumer reporting agency shall make all disclosures pursuant to Sections 1786.10 and 1786.22 and furnish all <<+ investigativet+>> consumer reports pursuant to Section 1786.24<<-* * *->><<+, w+>>ithout charge,if requested by the consumer within <<+60+>> days after receipt by <<+the+>> consumerofa notification of adverse action pursuant to Section 1786.40 stating that adverse action maybeor has been taken on the consumer.<<-* * ¥->> <<.* * +.>><<+(b) Except as otherwise provided in subdivision (d), an+>> investigative consumer reporting agency may <<- * * ¥_>><<-+charge a consumera fee not exceeding eight dollars ($8) for making disclosures to the+>> consumer pursuant to Sections 1786.10<<+, 1786.11,+>> and 1786.22<<-* * *->><<+,+>> Any charges shall be indicated to the consumer prior to disclosure<<-* * *->><<+_+>> <<+(c) Aninvestigative consumer reporting agency shall not impose any charge for providing notice to a consumerrequired under Section 1786.24 or notifying a person pursuant to subdivision (k) of Section 1786.24+>> ofthe deletion of information <<+thatt>> is found to be inaccurate or <<-* * *->><<+ that cannot+>> be verified. <<_4 * #.>> <<+(d) Upon the request of the consumer, an investigative consumerreporting agencyshall makeall disclosures pursuant to Section 1786.10 and 1786.22 once during any 12-month period without charge to that consumer if the consumercertifies in writing that he or she (1) is unemployed and intends to apply for employment in the 60-day period beginning on the date the certification is made, (2) is a recipient of public welfare assistance, or (3) has reason to believethatthe fife on the consumerat the investigative consumerreporting agency contains inaccurate information due to fraud.+>> <<+(e) An investigalive consumerreporting agency shall not impose any charge on a consumerfor providing anynotification or making anydisclosure required bythistitle, except as authorized by this section.+>> SEC. 10. Section 1786.30 of the Civil] Code is amended to read: << CA CIVIL § 1786.30 >> 1786.30. Whenever an investigative consumer reporting agency prepares an investigative consumer report, no adverse information in the report (other than information <<+thatt+>>is a matter of public record,the status of which has been updated pursuant to Section 1786.28<<+)+>> maybeincludedin a subsequent investigative consumerreport unless <<+that+>> adverse information has been verified in the process of making <<+the+>> subsequent <<+tinvestigativet+>> consumerreport, or the adverse information was received within the three-month period preceding the date the subsequent report is furnished. SEC.1]. Section 1786.40 of the Civil Code is amendedto read: << CA CIVIL § 1786.40 >> 1786.40. (a) Whenever insurance for personal, family, or household purposes, employment, or the hiring of a dwelling unit involving a consumeris denied or the charge for <> insurance orthe hiring of a dwelling unil is increased either wholly or partly because of information containedin an investigative consumerreport from an investigative consumerreporting agency, the user ofthe investigative consumerreport shall so advise the consumer against whom <<+the+>> adverse action has beentaken and supply the name and addressofthe investigative consumerreporting agency making the report. (b) Whenever insurance for personal, family, or household purposes involving a consumeris deniedorthe charge for <<+that +>> insurance is increased either wholly or in part because ofinformation obtained from a person other than an investligalive consumerreporting agency, the consumer, or another person related to the consumer and acting on the consumer's behalf and bearing uponthe consumer's general reputation, personal charactcristics or modeof living, the user of <<+the+>> information shall, within a reasonable period of time, and uponthe consumer's written request for the reasons for <<+ thet>> adverse action received within 60 days after learning of <<+the+>> adverse action, disclose the nature and substance ofthe informationto the consumer. The user of <<+the+>> information shall clearly and accurately disclose to the consumerhis <> right to make <<+this+>> written request at the time <<+the+>> adverse action is communicated to the consumer.<<-* * *->> SEC. 12. Section 1786.50 ofthe Civil Code is amendedto read: c o&2043 Thomson Reuters. No claim to original U.S. Government Works. 8 VOLUME 2 CALIFORNIA LEGISLATURE AT SACRAMENTO 1997-98 REGULAR SESSION SENATE FINAL HISTORY SHOWING ACTIONS TAKEN IN THIS SESSION ON ALL SENATEBILLS, CONSTITUTIONAL AMENDMENTS, CONCURRENT, JOINT, AND SENATE: RESOLUTIONS CONVENED DECEMBER 2, 1996 ADJOURNED SINE DIE NOVEMBER 30, 1998 DAYS IN SESSION .............040.eect erence tence eee teas 271 CALENDAR DAYS 00... cece ete eet een ee eee e eee e ne eee 729 _UEUTENANT GOVERNOR SENATOR JOHN L. BURTON __ Presidentof the Senate President pro Tempore. Compiled Under the Direction of GREGORY SCHMIDT Secretary of the Senate By DAVID H. KNEALE, ESQ. History Clerk 1 (Raymond Declaration, Page 5) MONDAY, NOVEMBER 30, 1998 1041 S.B. No. 1454—Leslie (Coauthor: Senator Watson) (Coauthors: Assembly Members Bowler, House, Kaloogian, and Prenter). An act to amend Sections 1786.2, 1786.10, 1786.12, 1786.16, 1786.18, 1786.20, 1786.24, 1786.26, 1786.30, 1786.40, and 1786.50 of, and to add Section 1786.11 to, the Civil Code, relating to investigative consumerreporting. 1998 Feb. 2—Introduced. Headfirst time. To Com. on RLS.for assignment. To _. print. Feb, 3—From print. May be acted upon on orafter March 5. Feb. 12—To Com. on JUD. April 21—Set for hearing April 28. April 22—-Hearing postponed by committee. April 27—From committee with author’s amendments. Read second time. ' Amended. Re-referred to committee. April 28—Set for hearing May5. May \ll—From committee: Do pass as amended. (Ayes 8. Noes 0. Page 4465.) May 12—Readsecond time. Amended. To third reading. May 18—To Special Consent Calendar. May 21—Read third time. Passed. (Ayes 36. Noes 0. Page 4721.) To Assembly. May 2\—In Assembly. Readfirst time. Held at Desk. ~ June 4—To Com. on C.P.,G.E. & E.D. June 8—From committee with author’s amendments. Read second time. Amended. Re-referred to committee. June 10—Hearing postponed by committee. June ._ 18—From committee with author’s amendments. Read second time. Amended. Re-referred to committee. ~ June 24—From committee: Do pass. To Consent.Calendar. (Ayes 11. Noes 0.) June 25—Read second time. To Consent Calendar. . July 2~—Placed oninactive file on request of Assembly Member Bowler. Aug. 17—Notice of motion to remove from inactive file given by Assembly Member Keeley. ; Aug. 18—From inactive file to third reading file. - Aug. 24—Read third time. Amended. Re-referred to Com. on C. P.,G. E. & E. - pursuant to Assembly Rule 77.2. Aug. 25—From committee: Do pass. (Ayes 8. Noes0.) Aug. 26—Read second time. To third reading. Aug. 27—Read third time. Passed. (Ayes 73. Noes 0. Page 9189.) To Senate. Aug. 27—In Senate. To unfinished business, Aug. 28—Senate concurs in Assembly amendments. (Ayes 38. Noes 0. Page oil.) To ‘enrollment. Sept. 11—Enrolled. To Governor at 11 a.m. Sept. 29—Approved by Governor. Sept. 30—Chapteredby Secretary of State. Chapter 988, Statutes of 1998. 2 (Raymond Declaration Page6) Be z rae = a Be. COMMITTEES: VICE CHAIRMAN APPROPRIATIONS JUDICIARY RURAL CAUCUS CHAIRMAN YESTERN STATES LEGISLATIVE FORESTRY TASK FORCE MEMBER: INSURANCE NATURAL RESOURCES AND WILDLIFE SUBCOMMITTEES: INSURANCE SUBCOMMITTEE ON HEALTH CARE REFORM Senate Qalifornia Legislature TIM LESLIE SENATOR,FIRST DISTRICT MEMORANDUM 29-December-1997 TO: LEGISLATIVE COUNSEL FROM: KEVIN SMITH RE: BILL REQUEST . JOINT COMMITTEES: FAIRS ALLOCATION AND CLASSIFICATION LEGISLATIVE BUDGET PRISON CONSTRUCTION AND OPERATIONS SELECT COMMITTEES: CALIFORNIA'S WINE INDUSTRY GENETICS AND PUBLIC POLICY it is our intent to continue to work on the issue of “employee background checks.” Althoughyouroffice has prepared a proposal (RN 24765), recent amendmentsto the “Fair Credit and Reporting Act” (FCRA) (15 U.S.C. Section 1681 et seq.) have addressed many of our concerns. Having discussed these “federal” changes with Ms. Cindy Cardullo of youroffice, it was agreed that a new proposal would be drafted, mindful of the following changes: e Avoidance of federal preemption (Section 168 1t) e An expandeddefinition of “Investigative ConsumerReports,” per RN 24765, which incorporates factual data (e.g., DMV or court records) e No caps on actual damagesasincluded in the FCRA (Section 1681n), with a minimum of $1000(see CC Section 1786.50(a)(1)) e Nocaps on attorney’s fees or punitive damages, as currently allowed under CC Section 1786.50(a)(2)-(b) e Incorporation of all permissible federal provisions with the exception of the aforementioned changes Additionally, please add the following coauthors: e Senators Ray Haynes and Diane Watson e AssemblymanLarry Bowler SACRAMENTOOFFICE « STATE CAPITOL » SACRAMENTO, CA 95814 (916) 445-5788 ROSEVILLE OFFICE * 1200 MELODY LANE,SUITE 110+ ROSEVILLE, CA 95678 * (916) 969-8232 + (916) 783-8232 * (916) 624-9588 + (800) 772-7296 E-MAIL ADDRESS senator.leslie @sen.ca.gov 1 (Raymond Declaration, p.7) Any questions regarding “policy goals” or “practical application” can be determined by referenceto the attached materials from “Background America,Inc.” (BA, Inc.). BA, inc. has provided us with a visual model of how the process of employee background checksshould occurin California (with the exception of some minor changes noted above). This request has been orally conveyed to Ms. Cardullo on December29, 1997. Both she and Mr. Jack Zorman (who completed RN 24765)are familiar with the topic and should be consulted. Feel free to contact Kevin Smith at 445-5788for further clarification or regarding any comments you may have. Please have this prepared by Monday, January 5, 1998, SURE. Thank you for your attention to this request! ATTACHMENTS:background materials from Background America,Inc. 2 (Raymond Declaration,p. 8) SB 1454 \Egefilovee Privacy Background: Similar to a consumer ¢redil report, un investigative consumer report is a compilation of inturmation on an individual, often used by employers when screening new upphicants tixisting Jaw provides a framework for what is called an “investigative Consumer reporting agency,” but its definition only includes those reports compiled through personal interviews. Existing practice, however. includes dala compilation profiles whi h ay OF May not include imtormation obtained through personal interviews. (Foy Often tiames, dhe information ts obtained from the Internet.) Most consumer reponinyg agency practices, therefore, are not covered by existing statute. What we need: txisting law needs to be changed to reflect the current broad use of database information, such us DMV records, civil judgments, bankruptcics, criminal records. etc... What this bill will do: This legisiation provides a similar disclosure requirement to that of consumer credit reporting agencies. [1 will amend 4 portion of the civil code (section 1786 ct seq. ), periaining to investigative consumer reports. The measure’s busic components provide: e Notification to the consumer/applicant that an “investigative consumer report | is being conducted by the employer or potential employer. e Notification to the consumer on how he or she may obtain 2 copy of the investigative Consumer report conducted on behalf of the enplover e Acortrective plan for the consumer to follow in the event that information on his or her report is incorrect. ° Legal remedies for the consumerin the event that a consumer reporting gency refuses to correct factually incorrect information ° Bring California into conformity with recent amendments to the federal Murr Credit and Reporting Act (15 USC Sections 168} et seq) 3 (Raymond Declaration, p. 9) Why California needs this bill: eo This meusure will update existing law and plug numerous loopholes which allow: most reporting agencies to escape the law's direct application. By expanding these provisions, fewer of these employment background search organizations will be afforded an opportunity to make bogus or inaccurate data available on an individual. tmployer who use such agencieswill benefit by receiving the most accurate intormation available on current and prospective employees. Most imporntanuy, the individual whois the subject of the background check will he empowered in two ways: 1. Heor she will kaow what ix contained in (heir report; and 2. If the report is flawed. the indivividual will be in a position tu address any misinformation. 4 (Raymond Declaration, p. 10) COMMITTEES: [V \ FORESTRYTASK FORCE MEMBER: INSURANCE NATURAL RESOURCES AND WILDLIFE seem Penate RURAL CAUCUS rest TTESLEGSLATIVE California Hegislature JOINT COMMITTEES: FAIRS ALLOCATION AND CLASSIFICATION LEGISLATIVE BUDGET PRISON CONSTRUCTION AND OPERATIONS SELECT COMMITTEES: CALIFORNIA'S WINE INDUSTRY GENETICS AND PUBLIC POLICY SUBCOMMITTEES: INSURANCE SUBCOMMITTEE ON HEALTH CARE REFORM TIM LESLIE SENATOR,FIRST DISTRICT Memorandum DATE: May 4, 1998 TO: Members, Senate Judiciary Committee FROM: Tim Leslie RE: Tomorrow’s Committee Hearing: Senate Bill 1454: Investigative Consumer Reports Similar to a consumercredit report, an investigative consumerreport is a compilation of information on an individual that is often used by employers, landlords and insurers when screening job, rental or insurance applicants. Given the fact that greater number of employers, landlords and insurers areutilizing these.investigative consumer reports as a tool to minimize potential legal or financialrisks, it behooves California to updateits laws to promote greater accuracy, faimess and privacyfor all involved. Previousstate law relating to investigative consumer reports pertained only to reports compiled through personal interviews and did notpertain to information gleaned from any other sources, such as court documents or arrest records. Consequently, the bulk of personal information appearing on your investigative consumer report wasessentially “off limits” with regards to your being notified about its existence and your ability to review and purge inaccurate information. Likewise, certain entities, such as licensed private investigators, could provide third parties with information about you, and this information could be used whenever you applied for employment, a rental or insurance. Yet, state law was not applicable to theseentities or the information they compiled on you. Recent substantial amendments to the federal Fair Credit Reporting Act (15 U.S.C. 1681- 1681u) now ensures your access to any information contained on an investigative consumerreport that is compiled on you and used for employment,rental or insurance purposes. Congress amended the FCRA in 1996 in response to consumer complaints and newspaperarticles about inaccurate credit reports resulting in frustrated consumers and lost employment opportunities (the FCRA amendments pertain to consumercredit reports and investigative consumerreports). SACRAMENTO OFFICE« STATE CAPITOL » SACRAMENTO, CA 95814 (916) 445-5788 ROSEVILLE OFFICE + 1200 MELODY LANE,SUITE 110+ ROSEVILLE, CA 95678 + (916) 969-8232 » (916) 783-8232 » (916) 624-9588 » (800) 772-7296 E-MAIL ADDRESS- senutor.leslie@sen.ca,gov 1 (Raymond Declaration, p. 11) SB 1454 simply updates ourstate laws to providethat: e You are notified in writing when an investigative consumerreport will be obtained on you bya third party for employment, rental, or insurance purposes. e Only legitimate third parties obtain a copy of your investigative consumerreport and then onlyafter certifying to the investigative consumer reporting agency that you have first been notified in writing. e Access to your investigative consumerreport file by other personsis limited. e A copy ofthis investigative consumerreport must be madeavailable to youforat least 60 days after the date on whichthereport has been obtainedby third party. e You can find out what information is contained in yourreport, and to whom this information has beensent. e You can dispute inaccurate information appearing on your report with the investigative consumer reporting agency, and the agency mustcorrector delete this inaccurate or unverified information within 30 days after you dispute it. The agency must also notify any person who provided information you disputed andprovidethat person with any relevant information you have broughtto the agency’sattention. e Outdated information on youthat is generally older than seven years may not be reported (14 years for bankruptcies). e You have reasonable legal remediesavailable for actual damagessustained in the event that an investigative consumerreporting agency refuses to correct factually incorrect information. Providing consumersaccess to review their investigative consumerreports, to dispute inaccurate information, and to ensurethat these reports are as accurate as possible not only makes good commonsense,butis also good business sense. Greater disclosure means greater accuracy. Moreover, J think this is also an issue offairness and equity, as so compellingly detailed in a recent Los Angeles Timesarticle, which I have attached for you review. Hearing of Mr. Bronti Kelly’s plight prompted mydecision to author this measure and Senate Bill 1374, pertaining to identity theft. I hope you will support SB 1454 whenit comes before you tomorrow for your consideration. , Thank you. attachment ho ew aa ty ia t na ls 2 (Raymond Declaration, p. 12) INVESTIGATIVE CONSUMER REPORTS:SUMMARY POINTS THIS MEASURE WILL AMEND A PORTION OFTHE CIVIL CODE (SECTION 1786 ET SEQ.), PERTAINING TO INVESTIGATIVE CONSUMER REPORTS. SIMILAR TO A CONSUMER CREDIT REPORT, AN INVESTIGATIVE CONSUMER REPORTIS A COMPILATION OF INFORMATION ON AN INDIVIDUAL, OFTEN USED BY EMPLOYERS WHEN SCREENING NEW APPLICANTS. THIS LEGISLATION PROVIDES A SIMILAR DISCLOSURE REQUIREMENT TO THAT OF CONSUMER CREDIT REPORTING AGENCIES. ITS BASIC COMPONENTS PROVIDE: e NOTIFICATION TO THE CONSUMER/APPLICANT THAT AN “INVESTIGATIVE CONSUMER REPORT”IS BEING CONDUCTED BY THE EMPLOYER. e INFORMATION TO THE CONSUMER ON HOW TO OBTAIN A COPY OF THE INVESTIGATIVE CONSUMER REPORT CONDUCTED ON BEHALF OF THE EMPLOYER. , e A CORRECTIVE PLAN FOR THE CONSUMER TO FOLLOWIN THE EVENT THAT INFORMATION ON HIS OR HER REPORTIS INCORRECT. e LEGAL REMEDIES FOR THE CONSUMERIN THE EVENT THAT A CONSUMER REPORTING AGENCY REFUSES TO CORRECT FACTUALLY INCORRECT INFORMATION. EXISTING LAW ALREADY PROVIDES A FRAMEWORKFOR WHATIS CALLED AN “INVESTIGATIVE CONSUMER REPORTING AGENCY.” THIS MEASURE WILL UPDATE EXISTING LAW AND PLUG NUMEROUS LOOPHOLES WHICH ALLOW MOST REPORTING AGENCIES TO ESCAPE THE LAW’S DIRECT APPLICATION. FOR EXAMPLE, EXISTING LAW EXCLUDESPRIVATE INVESTIGATORS FROM THE DEFINITION OF A “CONSUMER REPORTING AGENCY,” ALTHOUGH PRIVATE INVESTIGATORS PROVIDE A GREAT DEAL OF EMPLOYMENT INFORMATION TO EMPLOYERS. THIS LEGISLATION WILL DELETE THIS EXEMPTION. MOREOVER,EXISTING LAW NARROWLYDEFINESAN “INVESTIGATIVE CONSUMER REPORT” TO ONLY INCLUDE THOSE REPORTS COMPILED 3 (Raymond Declaration, p. 13) (py‘d‘uonerepooqpuowxvy)Pp iZYNSOTDSIC‘SHNSOTOSIA ‘JUNSOTOSIC‘JIdWISSINOILVISID31SIH.LHO4SWSHLHNO ‘NOILVWHOANISINANVLOSYYOOOL NOILISOdVNf36SHOSJSHAHLTHMCNVLYOd3YHISHLNIGANIVLNOO SILVHMONIMON®AdGSYHSMOdWE3dTHMMOSHOGNNOHDMOVAa JHLAOLOSPANsAHLSIOHMTWNGIAIGNISHL“LNVLYOdWILSOW “WOQIAIGNI NVNOVLVGALVHNOOVNIHOSNDO"ALVYERsMOWdOLALINNLYOddO NVQ3qYOdssV3dTMMSNOLLVZINVSHOHOYVASGNNOHDMOVE LNAWAOIdW3SASSHLAOSS3T‘SNOISIAOHdASSHLONIGNWdX3Ad ‘O13‘SGYHOOSYTWNIWIHO‘SAIOLGNYMNVS‘SLNSWSOanr AID‘SGHOOSYAWGSVHONS‘NOLLVAYOSNISSVEVLVG40 ASNAvVOUdLNSYYNSDAHLLOAIASYOLGADNVHO3dMVSIHLLVHL AYVSSAOANSILI‘AHOSSHSAHL‘SMAIAKALNITVWNOSH3dHDONOYWHL PaOKESERY PASK TORCH ee Senate eaar ees es Galifornia Pegislature AUNTIE eye SEA. INSEE ANOT NOPE RS KE SOURED SS ASDUASES DH det SEOSIMITE ALES INS BANECL SUROCOMAMIPTEE ON WP AD EEA ARE RED ORAL TIM LESLIE SENATOR,FIRSTDISTRICT September 8, 1998 The Honorable Pete Wilson Governor State of California State Capitol, First Floor Sacramento, CA 95814 Dear Governor Wilson: TANT LAINIE DATRS ALLOCATION VNEr ED ASSITIG SEIN These: SVIND BUTK AT PINON CONSTRE Gas ASEOPE RATIONS SECU CONDEEITES COADTPORNTS SWENE INDIES TRY CENTRES AND PG Bs te Poty lam writing in response to the comments contained in a ‘Request for Veto of Senate Bill 1454”letter, datedSeptember 3, 1998, that was written at the behest of ChoicePoint,a firm located in Atlanta that conducts employee background checks. Since allegations in this letter are grossly inaccurate, I feel compelled to respond to them. First of all, there is no confusion on mypart -- or on the part ofthe Legislature, which overwhelmingly passed this measure -- as to purpose of SB 1454 with regards to the use of“investigative consumerreports” for employment, insurance or landlord/tenant transactions. This measure is intended to strengthen disclosure requirements for investigative consumer reports similar to what alrcady exists today for consumercredit reports. The fact of the matteris that currentstate law is unclearas to the types of informationthat can be contained in an investigative consumer report. For example, Section 1786.2(c) of the Civil Code defines “investigative consumer report” to mean: ...a consumer report in which information on a consumer’s character, general reputation, personal characteristics, or modeofliving is obtained through personal interviews with neighbors,friends, or associates ofthe consumerreported on, or others with whom heor she is acquainted or who may have knowledge concerning any such itemsofinformation... The languagein this definition, however, conflicts with Section 1786.18(a), which clearly states those items of information that are prohibited from being contained in an investigative consumer report. Obviously, a narrow interpretation of what can be contained in an “investigative consumerreport,” as provided under Section 1786.2 -- and as advocated by ChoicePoint -- would render Section 1786.18 meaningless DAC KAMENTO OFFICE © STATE CAPTFOL © SACRAMENTO, CA S55(0-4 6161445 S78N ROSESTLE OPPICE +1200 MELODY LANE StUPE DAP ROSEVILLE. CA SS078 + (910) 9b9-R232 ROE BIB©LAT OO4-YANS © NINE OS 08 I-MAT. ADDRESS senatorestedsenchiin 1 (Raymond Declaration, p. 15) The Honorable Pete Wilson Page Two Govemor, State of California The business community and the insurance industry also obviously know that investigative consumerreports in fact contain much more information than ChoicePoint, or Section 1768.2(c) would lead one to believe. For example, SB 1454 -- in Section 1786.18(b)(1) and (2) -- conformsstate law to federal law with regards to exemptions under which business transactionsfor underwriting insurance and for employing individuals can ignore the prohibitions otherwise contained in Section 1786.18(a). The bill also gave similar treatmentto the realtors and landlords with regards to the types of informationthat can be contained onan investigative consumerreport involving transactionsrelative to renting dwelling units [Section 1786.18(b)(3)). Keep in mind that SB 1454 did not create these exemptions, but merely increased the amounts ofthe respective dollar thresholds already contained in current state law. Logic dictates that neither the business community nor the insurance industry would haveinsisted on this amendments were the types of information routinely contained in and provided by investigative consumerreports limited only to information gleaned from personal interviewsofthird parties. Further evidence of ChoicePoint’s faulty assumptions with respectto the California’s statutory perspective of investigative consumerreports can be foundin Sections 1786.28 and 1786.30, which both expressly recognize that these reports can and . do contain information thal is a matter of public record. Again, such information would not be available on investigative consumerreports if these reports contained only the types of information that ChoicePoint mistakenly argues can be contained on such reports undercurrentstate law. Myassertion throughout SB 1454’s legislative journey was that this measurc’s definition of an investigative consumer report does not expand or deviate from whatis already applicable under current state law. In short, whilc SB 1454, increases disclosure and accountability requirements, which is consistent with federal law, the parameters of whattypes ofinformation can be included in an investigative consumer report understate law remains unchanged and doesnot conflict with, nor is superseded by, federal law. Second, ChoicePoint’s assertion that SB 1454 is somehow “bad for employers” borders on the ridiculous, especially given my consistently strong pro-business record as a legislator. WhatI find particularly galling about ChoicePoint’s allegationsis thatit appears that the individual advocating on their behalfis ignorant of FCRA,of current state law, and ofthe language contained in SB 1454. One only has toread SB 1454 to immediately realize that ChoicePoint’s charges ofthe bill’s supposed affects upon employers are specious. Nowhere does SB 1454 contain language that requires employers (or insurers or landlords, for that matter) to “provide [any] applicant with a copy...” ofthe investigative consumerreport. Similarly, there is no provision in SB 1454 that requires employers, et. al., to payfor the cost ofproviding an applicant/consumer a copy ofthat subject's investigative consumerreport. 2 (Raymond Declaration, p. 16) The Honorable Pete Wilson Page Three Govemor,State of Califormia Anapplicant/consumercanobtain a copy of that report from the investigative consumer reporting agency -- and can be charged up to $8 by that agency for the cost of providing that report -- but SB 1454 does not force an employer, insurer or landlord to provide a copy of that report or to pay for the provisionof that report. ChoicePoint’s “advocacy”on behalfof employers with regards to SB 1454clearly displays, at best, a complete ignorance ofcurrentstate law, the intent of SB 1454 andthe provisions contained therein. One only hopesthat ChoicePoint conducts its employee background investigations in a much more thorough mannerthan the “research” conductedforits veto request. I strongly believe -- and SB 1454’s languagereflects this belief -- that it should not matterfrom where information on a person is obtained, but that if this information is contained on a background check ofthat person for the expressed purpose of obtaining employment, renting an dwelling or obtaining an insurancepolicy, then it should be subject to greater disclosure and accountability standards. I stated my position loudly and clearly throughout SB 1454’slegislative process and, obviously, my colleagues in the Legislature overwhelmingly agreed with mesince the bill received nary a no vote, nordid it receive any opposition letters from any special interests. SB 1454 is a fair and balanced measure and is deserving of your support. I hope this information is helpful to you. Sincerely, TIM LESLIE Senator, First District TLicm ce: 1) Happy Chastain Califomia State and Consumer Services Agency 2) John Caldwell Heim, Noack, Kelly & Spahn 3 (Raymond Declaration, p. 17) SENATE BILL No. 1454 Introduced by Senators Leslie and Watson (Coauthors: Assembly Members Bowler, House, Kaloogian, and Prenter) February 2, 1998 An act to amend Sections 1786.2, 1786.10, 1786.12, 1786.16, 1786.18, 1786.20, 1786.24, 1786.26, 1786.30, 1786.40, and 1786.50 of, and to add Section 1786.11 to, the Civil Code, relating. to investigative consumerreporting. LEGISLATIVE COUNSEL'S DIGEST SB 1454, as introduced, Leslie. Investigative consumer reporting. Existing law, as contained in the Investigative Consumer Reporting Agencies Act, regulates the preparation, disclosure, and use of investigative consumerreports. Existing law defines an “investigative consumer report” as a report in which specified information on a consumer is obtained through personal interviews and defines an “investigative consumer reporting agency” as any person who, for a_ fee, assembles employment or insurance information, or information relating to the hiring of dwelling units concerning consumers for specified purposes. This bill would redefine an “investigative consumer report” as a report in which specified consumer information is obtained for employment or insurance purposes or for renting a dwelling, and an “investigative consumer reporting agency” as any person who, for a fee, assembles any information concerning consumersfor those specified purposes. 99 1 (Raymond Declaration,p. 19) SB 1454 —2— Existing law generally provides that a person may not obtain an investigative consumer report with respect to a consumer unless the person discloses in writing to the consumer that the report will be made, and provides other specified information. This bill would require, as a further condition to obtaining an investigative consumer report, that the person certify to the agency that he or she (a) has made the required consumer disclosures and (b) will provide additional specified disclosures if requested by the consumer. The bill would also require an investigative consumer reporting agency that provides an investigative consumer report to a person other than the consumer to make a copy of that report available to the consumer, as specified, for at least 60 days after the date the report is provided to the other person. Existing law provides that consumers have the right to visually inspect all files maintained by an investigative consumer reporting agency regarding that consumer, except medical information, as defined. Existing law also provides that consumers have the nght to be informed by the user of consumer information of the reasons for any adverse action taken with respect to specified insurance due to information obtained from a person other than an investigative consumer reporting agency, except that the user may withhold medical information, as defined, until the consumer obtains written authorization from the consumer’s physician. This bill would delete both of these exceptions relating to medical information. Existing law provides that investigative consumer reports may not include, among other things, any arrest records, paid tax liens, or other specified items that antedate the report by more than 7 years. This bill would specify that information relating to an arrest, indictment, conviction, civil action, tax lien, or outstanding judgment may not be included in a report unless verified by the agency no more than 30 days prior to the date of the report, and adverse information obtained through a personal interview, as specified, may not be included in a report unless it is either verified by a 2nd party or the interviewee is the best source of the information. 99 2 (Raymond Declaration, p. 20) —3— SB 1454 Existing law gives consumers the right to dispute inaccurate information contained in an investigative consumer report and to bring an action to recover damages for violations of the act in an amount equal to the greater of actual damages or $300. This bill would add new procedures and notice requirements relating to the investigation of disputes by consumers and the deletion of information in a consumer’s file that is determined to be inaccurate. The bill would also increase the minimum amount of damages recoverable by a consumerfor violations of the act from $300 to $1,000. Existing law specifies that reasonable charges may be imposed upon a consumer to receive a copy of an investigative consumer report relating to that consumer, unless the copy is requested after the taking of an adverse action against the consumer based on the report, as specified. This bill would specify the amount of fee, if any, that may be charged to consumer to receive a copy of an investigative consumer report or other information, notices or disclosures, relating to that consumer. The bill would require investigative consumer reporting agencies to provide a consumer with a copy of his or her investigative consumer report, free of charge, not more often that once a year, if the consumer is unemployed, is seeking employment, receives public welfare assistance, or believes that his or her file contains inaccurate information dueto fraud. Thebill would makeother related changes. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. Thepeople ofthe State ofCalifornia do enactasfollows: 1 SECTION 1. Section 1786.2 of the Civil Code is 2 amendedto read: 3 1786.2. The following terms as used in this title have 4 the meaning expressedin this section: 5 (a) The term “person” means any individual, 6 partnership, corporation, limited liability company, trust, 7 estate, cooperative, association, government or 8 governmental subdivision or agency, or other entity. The 99 3 (Raymond Declaration, p. 21) O W C O I N N A B W N e W W R M B K W W W W W W W W N N N N N N N N N N P H e e —7— SB 1454 consumer, the address and telephone number of the recipient. (e) The investigative consumer reporting agency shall also disclose the dates, original payees, and amounts of any checks upon which is based any adverse characterization of the consumer, included in the file at the time ofthe disclosure. SEC. 3. Section 1786.11 is added to the Civil Code, to read: 1786.11. Every investigative consumer reporting agency that provides an investigative consumer report to a person other than the consumer shall make a copy of that report available, upon request and proper identification, to the consumer for at least 60 days after the date that the report is provided to the other person. SEC. 4. Section 1786.12 of the Civil Code is amended to read: 1786.12. An investigative consumer reporting agency shall only furnish an investigative consumer report under the following circumstances: . (a) In response to the order of a court having jurisdiction to issue such an order. (b) In compliance with a lawful subpoena issued by a court of competentjurisdiction. (c) In accordance with the written instructions of the consumer to whom itrelates. (d) To a person whieh thatit has reasonto believe: (1) Intends to use the information for employment purposes; or (2) Intends to use the information serving as a factor in determining a consumer’s eligibility for insurance or the rate for such insurance; or (3) Intends to use the information in connection with a determination of the consumer’s eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider the applicant’s financial responsibility or status; or (4) Intends to use the information in connection with an order of a court of competent jurisdiction to provide 99 4 (Raymond Declaration, p. 22) SB 1454 — 8— O o n A U N B W N e B P W W W W W W W W W W N N N N N N N N N H N Y H e support where the imposition or enforcement of the order involves the consumer; or (5) Intends to use the information in connection with the hiring of a dwelling unit, as defined in subdivision (c) of Section 1940. (e) An investigative consumer reporting agency shall not prepare or furnish an investigative consumer report to a person described in subdivision (d) unless the agency has received the certification under paragraph (4) of subdivision (a) of Section 1786.16 from the person requesting the report. SEC. 5. Section 1786.16 of the Civil Code is amended to read: 1786.16. (a) Any person described in subdivision (d) of Section 1786.12 shall not procure or cause to be prepared an investigative consumer report unless the following applicable conditions are met: (1) If an investigative consumer report is sought in connection with the underwriting of insurance, it shall be clearly and accurately disclosed in writing at the time the application form, medical form, binder, or similar document is signed by the consumer that an investigative consumer report regarding the consumer’s character, general reputation, personal characteristics, and mode of living may be made. If no signed application form, medical form, binder, or similar document is involved in the underwriting transaction, sueh the disclosure shall be made to the consumer in a writing mailed or otherwise delivered to the consumer not later than three days after the report wasfirst requested. (2) If, at any time, an investigative consumer report is sought for employment purposes other than promotion or reassignment, the person procuring or causing the report to be made shall, not later than three days after the date on which the report was first requested, notify the consumer in writing that an investigative consumer report regarding the consumer’s’ character, general reputation, personal characteristics, and mode of living will be made. This notification shall include the name of the consumer reporting agency conducting the 99 5 (RaymondDeclaration, p. 23) — _ C S O O A T N N A B W N e H B W W W W W W W W W W N N H N N H N N N N D —9I— SB 1454 investigation and a summary of the provisions of Section 1786.22. (3) If an investigative consumer report is sought in connection with the hiring of a dwelling unit, as defined in subdivision (c) of Section 1940, the person procuring or causing the request to be made shall, not later than three days after the date on which the report was first requested, notify the consumer in writing that an investigative consumer report will be made regarding the consumer’s character, general reputation, personal characteristics, and mode of living. The notification shall also include the name and address of the consumer reporting agency whieh that will prepare the report. (4) The person procuring or causing the request to be made shall certify to the investigative consumer reporting agency that the person has made the applicable disclosures to the consumer required by this subdivision and that the person will comply with subdivision (b). (b) Any person described in subdivision (d) of Section 1786.12 shall, upon written request made by the consumer within a reasonable period of time after the receipt by the consumer of the disclosure required by subdivision (a), make a complete and accurate disclosure of the nature and scope of the investigation requested. This disclosure’ shall be made in writing, mailed or otherwise delivered, to the consumer not later than five days after the date the request for the disclosure was received from the consumer or the report was first requested, whicheveris later. (c) The provisions of subdivision (a) shall not apply to an investigative consumer report procured or caused to be prepared by an employer if the purpose of the employeris to: (1) Determine whether or not an employee is to be retained; and (2) To determine whether or not such employee is engaged in any criminal activity likely to result in a loss to the employer. te} 99 6 (Raymond Declaration, p. 24) AMENDEDIN SENATE APRIL 27, 1998 SENATE BILL No. 1454 Introduced by Senators Leslie and Watson (Coauthors: Assembly Members Bowler, House, Kaloogian, and Prenter) February 2, 1998 An act to amend Sections 1786.2, 1786.10, 1786.12, 1786.16, 1786.18, 1786.20, 1786.24, 1786.26, 1786.30, 1786.40, and 1786.50 - of, and to add Section 1786.11 to, the Civil Code, relating to investigative consumerreporting. LEGISLATIVE COUNSEL’S DIGEST SB 1454, as amended, Leslie. Investigative consumer reporting. Existing law, as contained in the Investigative Consumer Reporting Agencies Act, regulates the preparation, disclosure, and use of investigative consumerreports. Existing law defines an “investigative consumer report’ as a report in which specified information on a consumer is obtained through personal interviews and defines an “investigative consumer reporting agency” as any person who, for a_ fee, assembles employment or insurance information, or information relating to the hiring of dwelling units concerning consumers for 3rd parties for specified purposes. This bill would redefine an ‘investigative consumer report” as a report in which specified consumer information is obtained fer—employment—er—insuranee—purpe enting a—dweling by any means, and an “investigative consumer 5 =VavelaVe Q 2 J oO oO 98 7 (Raymond Declaration, p. 25) SB 1454 —2— reporting agency” as any person who, for a fee, assembles any information concerning consumers for these——speeified purposes 3rdparties. Existing law generally provides that a person may not obtain an investigative consumer report with respect to a consumer unless the person discloses in writing to the consumer that the report will be made; and provides other specified information. This bill would require, as a further condition to obtaining an investigative consumer report, that the person certify to the agency that he or she (a) has made the required consumer disclosures and (b)~ will provide additional specified disclosures if requested by the consumer. The bill would also require an investigative consumer reporting agency that provides an investigative consumer report to a person other than the consumer to make a copy of that report available to the consumer, as specified, for at least 60 days after the date the report is provided to the other person. Existing law provides that consumers have the right to visually inspect all files maintained by an investigative consumer reporting agency regarding that consumer, except medical information, as defined. Existing law also provides that consumers have the nght to be informed by the user of consumer information of the reasons for any adverse action taken with respect to specified insurance due to imformation obtained from a person other than an investigative consumer reporting agency, except that the user may withhold medical information, as defined, until the consumer obtains written authorization from the consumer’s physician. This bill would delete both of these exceptions relating to medical information. Existing law provides that investigative consumer reports may not include, among other things, any arrest records, paid tax liens, or other specified items that antedate the report by more than 7 years. This bill would specify that information relating to an arrest, indictment, conviction, civil action, tax lien, or outstanding judgment may not be included in a report unless verified by the agency no more than 30 days prior to the date of the report, and adverse information obtained through a personal 98 8 (Raymond Deciaration, p. 26) —3— SB 1454 interview, as specified, may not be included in a report unless it is either verified by a 2nd party or the interviewee is the best source of the information. Existing law gives consumers the right to dispute inaccurate information contained in an investigative consumer report and to bring an action to recover damages for violations of the act in an amount equal to the greater of actual damages or $300. This bill would add new procedures and notice requirements relating to the investigation of disputes by consumers and the deletion of information in a consumer’s file that is determined to be inaccurate. The bill would also increase the minimum amount of damages recoverable by a consumerfor violations of the act from $300 to $1,000. Existing law specifies that reasonable charges may be imposed upon a consumer to receive a copy of an investigative consumer report relating to that consumer, unless the copy is requested after the taking of an adverse action against the consumerbased on the report, as specified. This bill would specify the amount of fee, if any, that may be charged to a consumer to receive a copy of an investigative consumer report or other—imfermation,—netiees—or disclosures; relating to that consumer. The bill would require investigative consumer reporting agencies to provide a consumer with a copy of his or her investigative consumer report, free of charge, not more often that than once a year, if the consumer is unemployed, is seeking employment, receives public welfare assistance, or believes that his or her file contains inaccurate information due to fraud. The bill would make other related changes. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program:no. Thepeople ofthe State of California do enact asfollows: I SECTION 1. Section 1786.2 of the Curvil Code is 2 amendedto read: 3 1786.2. The following terms as used in this title have 4 the meaning expressedin this section: 98 9 (Raymond Declaration, p. 27) SB 1454 — 6— — C O W A T N N A P W N W W W W W W W W W W N O N N Y N N N N N N Y N B e e consumer under appropriate discovery procedures in the court in whichtheaction is brought. Nothing in this title shall be interpreted to mean that investigative consumer reporting agencies are required to divulge to consumers the sources of investigative consumer reports except in appropriate discovery proceduresas outlined herein. (c) The investigative consumer reporting agency shall also identify the recipients of any investigative consumer report on the consumer that the investigative consumer reporting agency has furnished: (1) For employment or insurance purposes within the two-year period preceding the request. (2) For any other purpose within the one-year period preceding the request. (d) The identification of a recipient under subdivision (c) shall include the name of the recipient or, if applicable, the trade name (written in full) under which the recipient conducts business and, upon request of the consumer, the address and telephone number of the recipient. (ec) The investigative consumer reporting agency shall also disclose the dates, original payees, and amounts of any checks upon which is_ based any adverse characterization of the consumer, included in the file at the time of the disclosure. SEC. 3. Section 1786.11 is added to the Civil Code, to read: 1786.11. Every investigative consumer reporting agency that provides an investigative consumer report to a person other than the consumer shall make a copy of that report available,. .upon request and proper identification, to the consumer for at least 60 days after the date that the report is provided to the other person. SEC. 4. Section 1786.12 of the Civil Code is amended to read: 1786.12. An investigative consumer reporting agency shall only furnish an investigative consumer report under the following circumstances: 98 10 (Raymond Declaration, p. 28) O M A N R W N —T7— SB 1454 (a) In response to the order of a court having jurisdiction to issue-sueh-an the order. (b) In compliance with a lawful subpoena issued by a court of competentjurisdiction. (c) In accordance with the written instructions of the consumer to whom it relates. (d) To a person that it has reason to believe: (1) Intends to use the information for employment purposes; or (2) Intends to use the information serving as a factor in determining a consumer’s eligibility for insurance or the rate for sueb any insurance; or (3) Intends to use the information in connection with a determination of the consumer’s eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider the applicant’s financial responsibility or status; or (4) Intends to use the information in connection with an order of a court of competent jurisdiction to provide support where the imposition or enforcement of the order involves the consumer; or (5) Intends to use the information in connection with the hirmg of a dwelling unit, as defined in subdivision (c) of Section 1940. (ec) An investigative consumer reporting agency shall not prepare or furnish an investigative consumer report to a person described in subdivision (d) unless the agency has received the certification under paragraph (4) of subdivision (a) of Section 1786.16 from the person requesting the report. SEC. 5. Section 1786.16 of the Civil Code is amended to read: 1786.16. (a) Any person described in subdivision (d) of Section 1786.12 shall not precure or cause to be prepared an investigative consumer report unless the following applicable conditions are met: (1) If an investigative consumer report is sought in connection with the underwriting of insurance, it shall be clearly and accurately disclosed in writing at the time the application form, medical form, binder, or similar 98 1] (Raymond Declaration,p. 29) SB 1454 — §— — _ C S O o w m r ~ a y n n f W N r e B R O W W W K W W H W W H W W N N N N N N N N D N E S S S A A R Z G C R O O H S A S S C S Z N S A R S H S B S E R B S C R N I B A R E D D Y A U document is signed by the consumer that an investigative consumer report regarding the consumer’s character, general reputation, personal characteristics, and mode of living may be made. If no signed application form, medical form, binder, or similar document is involved in the underwriting transaction, the disclosure shall be made to the consumer in a writing mailed or otherwise delivered to the consumer not later than three days after the report wasfirst requested. (2) If, at any time, an investigative consumer report is sought for employment purposes other than promotion or reassignment, the person procuring or causing the report to be made shall, not later than three days after the date on which the report was first requested, notify the consumer in writing that an investigative consumer report regarding the consumer’s’ character, general reputation, personal characteristics, and mode of living will be made. This notification shall include the name of the consumer reporting agency conducting the investigation and a summary of the provisions of Section 1786.22. (3) If an investigative consumer report is sought in connection with the hiring of a dwelling unit, as defined in subdivision (c) of Section 1940, the person procuring or causing the request to be made shall, not later than three days after the date on which the report was first requested, notify the consumer in writing that an investigative consumer report will be made regarding the consumer’s character, general reputation, personal characteristics, and mode of living. The notification shall also include the name and address of the consumer reporting agencythat will prepare the report. (4) The person procuring or causing the request to be made shall certify to the investigative consumer reporting agency that the person has made the applicable disclosures to the consumer required by this subdivision and that the person will comply with subdivision (b). (b) Any person described in subdivision (d) of Section 1786.12 shall, upon written request made by the consumer within a reasonable period of time after the 98 12 (Raymond Declaration,p. 30) O P I N N P W N | —I— SB 1454 receipt by the consumer of the disclosure required by subdivision (a), make a complete and accurate disclosure of the nature and scope of the investigation requested. This disclosure shall be made in writing; and mailed or otherwise delivered; to the consumer not later than five days after the date the request for the disclosure was received from the consumer or the report was first requested, whicheverislater. (c) The provisions of subdivision (a) shall not apply to an investigative consumer report procured or caused to be prepared by an employer if the purpose of the employer1s to: (1) Determine whether or not an employee is to be retained; and (2) To determine whether or not steh the employee is engaged in any criminal activity likely to result in a loss to the employer. z (d) Those persons described in subdivision (d) of Section 1786.12 of this title shall constitute the sole and exclusive class of persons who may cause an investigative consumerreport to be prepared. SEC. 6. Section 1786.18 of the Civil Code is amended to read: 1786.18. (a) Except as authorized under subdivision (b), no investigative consumer reporting agency shall make or furnish any investigative consumer report containing any of the following items of information: (1) Bankruptcies that, from the date of adjudication, antedate the report by more than 14 years. (2) Suits that, from the date of filing, and satisfied judgments that, from the date of entry, antedate the report by more than seven years. (3) Unsatisfied judgments that, from the date of entry, antedate the report by more than 10 years. (4) Unlawful detainer actions, unless the lessor was the prevailing party. For purposes of this paragraph, the lessor shall be deemed to be the prevailing party only if (A) final judgment was awarded to the lessor (i) upon entry of the tenant’s default, (1) upon the granting of the lessor’s motion for summary judgment, or (ii) following 98 13 (Raymond Declaration, p. 31) JAN RAYMOND LEGISLATIVE | HISTORY & INTENT THIS PAGE INTENTIONALLY LEFT BLANK 14 (Raymond Declaration, p. 32) AMENDEDIN SENATE MAY12, 1998 AMENDEDIN SENATE APRIL 27, 1998 SENATE BILL No. 1454 Introduced by Senators Leslie and Watson (Coauthors: Assembly Members Bowler, House, Kaloogian, and Prenter) February 2, 1998 An act to amend Sections 1786.2, 1786.10, 1786.12, 1786.16, 1786.18, 1786.20, 1786.24, 1786.26, 1786.30, 1786.40, and 1786.50 of, and to add Section 1786.11 to, the Civil Code, relating to investigative consumer reporting. LEGISLATIVE COUNSEL'S DIGEST SB 1454, as amended, Leslie. Investigative consumer reporting. Existing law, as contained in the Investigative Consumer Reporting Agencies Act, regulates the preparation, disclosure, and use of investigative consumerreports. Existing law defines an “investigative consumer report” as a report in which specified information on a consumer is obtained through personal interviews and = defines an “investigative consumer reporting agency” as any person who, for a_ fee, assembles employment or insurance information, or information relating to the hiring of dwelling units concerning consumers for 3rd parties for specified purposes. This bill would redefine an “investigative consumer report” as a report in which specified consumer information is 97 15 (Raymond Declaration,p. 33) _ SB 1454 —2— obtained by any means, and an “investigative consumer reporting agency” as any person who, for a fee, assembles any information concerning consumers for 3rd parties. Existing law generally provides that a person may not obtain an investigative consumer report with respect to a consumer unless the person discloses in writing to the consumer that the report will be made and provides other specified information. This bill would require, as a further condition to obtaining an investigative consumer report, that the person certify to the agency that he or she (a) has made the required consumer disclosures and (b) will provide additional specified disclosures if requested by the consumer. The bill would also require an investigative consumer reporting agency that provides an investigative consumer report to a person other than the consumer to make a copy of that report available to the consumer, as specified, for at least 60 days after the date the report is provided to the other person. Existing law provides that consumers have the right to visually inspect all files maintained by an_ investigative consumer reporting agency regarding that consumer, except medical information, as defined. Existing law also provides that consumers have the right to be informed by the user of consumer information of the reasons for any adverse action taken with respect to specified tmsurance due to information obtained from a person other than an investigative consumer reporting agency, except that the user may withhold medical ‘gnformation, as defined, until the consumer obtains written authorization from the consumer’s physician. This bill would delete both of these exceptions relating to medical information. Existing law provides that investigative consumer reports may not include, among other things, any arrest records, paid tax liens, or other specified items that antedate the report by more than 7 years. This bill would specify that information relating to an arrest, indictment, conviction, civil action, tax lien, or outstanding judgment may not be included in a report unless verified by the agency no more than 30 days prior to the date of the report, and adverse information obtained through a_ personal 97 16 (Raymond Declaration,p. 34) —3— SB 1454 interview, as specified, may not be included in a report unless it is either verified by a 2nd party or the interviewee is the best source of the information. Existing law gives consumers the right to dispute inaccurate information contained in an investigative consumer report and to bring an action to recover damages for violations of the act in an amount equal to the greater of actual damages or $300. This bill would add new procedures and notice requirements relating to the investigation of disputes by consumers and the deletion of information in a consumer’s file that is determined to be imaccurate. The bill would also increase the minimum amount of damages recoverable by a consumerfor violations of the act from $300 to $4,000 32,500. Existing law specifies that reasonable charges may be imposed upon a consumer to receive a copy of an investigative consumer report relating to that consumer, unless the copy is requested after the taking of an adverse action against the consumerbased on thereport, as specified. This bill would specify the amount of fee, if any, that may be charged to a consumer to receive a copy of an investigative consumer report or other disclosures relating to that consumer. The bill would require investigative consumer reporting agencies to provide a consumer with a copy of his or her investigative consumer report, free of charge, not more often than once a year, if the consumer is unemployed, is seeking employment, receives public welfare assistance, or believes that his or her file contains inaccurate information due to fraud. The bill would make other related changes. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program:no. Thepeople ofthe State of California do enact asfollows: SECTION 1. Section 1786.2 of the Civil Code is amendedto read: 1786.2. The following terms as used in this title have the meaning expressedin this section:W h O e S 97 17 (Raymond Declaration, p. 35) SB 1454 — 6— — : C S C O O A I T I N S M A P W D P W W W W W H W W W W W N N N N N N N N N N R R E R e consumer reports except in appropriate discovery proceduresas outlined herein. (c) The investigative consumer reporting agency shall also identify the recipients of any investigative consumer report on the consumer that the investigative consumer reporting agency has furnished: (1) For employment or imsurance purposes within the two-year period preceding the request. (2) For any other purpose within the one-year period preceding the request. (d) The identification of a recipient under subdivision (c) shall include the name of the recipient or, if applicable, the trade name (wnitten in full) under which the recipient conducts business and, upon request of the consumer, the address and telephone number of the recipient. (ce) The investigative consumer reporting agency shall also disclose the dates, original payees, and amounts of any checks or charges upon which is based any adverse characterization of the consumer, included in the file at the time ofthe disclosure. SEC. 3. Section 1786.11 is added to the Civil Code, to read: 1786.11. Every investigative consumer reporting agency that provides an investigative consumer report to a person other than the consumer shall make a copy of that report available, upon request and proper identification, to the consumer for at least 60 days after the date that the report is provided to the other person. SEC. 4. Section 1786.12 of the Civil Code is amended to read: 1786.12. An investigative consumer reporting agency . shall only furnish an investigative consumer report under the following circumstances: (a) In response to the order of a court having jurisdiction to issue the order. (b) In compliance with a lawful subpoena issued by a court of competent jurisdiction. (c) In accordance with the written instructions of the consumer to whom itrelates. 97 18 (Raymond Declaration,p. 36) — S O m r A N A M N P W b h + 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 — 7— SB 1454 (d) To a person that it has reason to believe: (1) Intends to use the information for employment purposes; or (2) Intends to use the information serving as a factor in determining a consumer’s eligibility for insurance or the rate for any insurance; or (3) Intends to use the information in connection with a determination of the consumer’s eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider the applicant’s financial responsibility or status; or (4) Intends to use the information in connection with an order of a court of competent jurisdiction to provide support where the imposition or enforcement of the order involves the consumer; or (5) Intends to use the information in connection with the hiring of a dwelling unit, as defined in subdivision (c) of Section 1940. ~ (ec) An investigative consumer reporting agency shall not prepare or furnish an investigative consumer report to a person described in subdivision (d) unless the agency has received the certification under paragraph (4) of subdivision (a) of Section 1786.16 from the person requesting the report. SEC. 5. Section 1786.16 of the Civil Code is amended to read: 1786.16. (a) Any person described in subdivision (d) of Section 1786.12 shall not procure or cause to be prepared an investigative consumer report unless the following applicable conditions are met: (1) If an investigative consumer report is sought in connection with the underwriting of insurance, it shall be clearly and accurately disclosed in writing at the time the application form, medical form, binder, or similar document is signed by the consumer that an investigative consumer report regarding the consumer’s character, general reputation, personal characteristics, and mode of living may be made. If no signed application form, medical form, binder, or similar document is involved in the underwriting transaction, the disclosure shall be 97 19 (Raymond Declaration, p. 37) SB 1454 — 8 — C O H A N N A B W Y P made to the consumer in @—writing writing and mailed or otherwise delivered to the consumer not later than three days after the report wasfirst requested. (2) If, at any time, an investigative consumer report is sought for employment purposes other than promotion or reassignment, the person procuring or causing the report to be made shall, not later than three days after the date on which the report was first requested, notify the consumer in writing that an investigative consumer report regarding the consumer’s’ character, general reputation, personal characteristics, and mode of living will be made. This notification shall include the name of the consumer reporting agency conducting the investigation and a summary of the provisions of Section 1786.22. (3) If an investigative consumer report is sought in connection with the hiring of a dwelling unit, as defined in subdivision (c) of Section 1940, the person procuring or causing the request to be made shall, not later than three days after the date on which the report was first requested, notify the consumer in writing that an investigative consumer report will be made regarding the consumer’s character, general reputation, personal characteristics, and mode of living. The notification shall also include the name and address of the consumer reporting agency that will prepare the report. (4) The person procuring or causing the request to be made shall certify to the investigative consumer reporting agency that the person has made the applicable disclosures to the consumer required by this subdivision and that the person will comply with subdivision (b). (b) Any person described in subdivision (d) of Section 1786.12 shall, upon written request made by the consumer within a reasonable period of time after the receipt by the consumer of the disclosure required by subdivision (a), make a complete and accurate disclosure of the nature and scope of the investigation requested. This disclosure shall be made in writing and mailed or otherwise delivered to the consumer not later than five days after the date the request for the disclosure was 97 20 (Raymond Declaration, p. 38) _ C O O M A N A B W P = B W W W W H W W K W W H O W N N N N N N N N N N Y S B O S P I A G D E G S V A S S H A A R E S O N S H S O C H U N U A T D E O D E —I— SB 1454 received from the consumer or the report was first requested, whicheveris later. (c) The provisions of subdivision (a) shall not apply to an investigative consumer report procured or caused to be prepared by an employer if the purpose of the employeris toz .r ; het , ; ; 2) a determine peter amie the employer 8 to—the—empleyer determine whether to retain an employee following or in accordance with a good faith belief that the employee is engaged in any criminal activity likely to result in a loss to the employer. (d) Those persons described in subdivision (d) of Section 1786.12 of this title shall constitute the sole and exclusive class of persons who may cause an investigative consumerreport to be prepared. SEC. 6. Section 1786.18 of the Civil Code is amended to read: 1786.18. (a) Except as authorized under subdivision (b), no investigative consumer reporting agency shall make or furnish any investigative consumer report containing any of the following items of information: (1) Bankruptcies that, from the date of adjudication, antedate the report by more than 14 years. (2) Suits that, from the date of filing, and satisfied judgments that, from the date of entry, antedate the report by more than seven years. (3) Unsatisfied judgments that, from the date of entry, antedate the report by more than 10 years. - (4) Unlawful detainer actions, unless the lessor was the prevailing party. For purposes of this paragraph, the lessor shall be deemed to be the prevailing party only if (A) final judgment was awarded to the lessor (i) upon entry of the tenant’s default, (11) upon the granting of the lessor’s motion for summary judgment, or (iii) following trial, or (B) the action was resolved by a_ written settlement agreement between the parties that states that the unlawful detainer action may be reported. In any 97 21 (Raymond Declaration, p. 39) JAN RAYMOND LEGISLATIVE | HiSTORY & INTENT THIS PAGE INTENTIONALLY LEFT BLANK 22 (Raymond Declaration,p. 40) AMENDED IN ASSEMBLY JUNE8, 1998 AMENDEDIN SENATE MAY12, 1998 AMENDEDIN SENATE APRIL 27, 1998 SENATEBILL | No. 1454 Introduced by Senaters-Leslie-and-Watsen-Senator Leslie (Coauthor: Senator Watson) (Coauthors: Assembly Members Bowler, House, Kaloogian, and Prenter) February 2, 1998 An act to amend Sections 1786.2, 1786.10, 1786.12, 1786.16, 1786.18, 1786.20, 1786.24, 1786.26, 1786.30, 1786.40, and 1786.50 of, and to add Section 1786.11 to, the Civil Code, relating to investigative consumerreporting. LEGISLATIVE COUNSEL’S DIGEST SB 1454, as amended, Leslie. Investigative consumer reporting. Existing law, as contained in the Investigative Consumer Reporting Agencies Act, regulates the preparation, disclosure, and use of investigative consumerreports. Existing law defines an “investigative consumer report” as a report in which specified information on a consumer is obtained through personal interviews and defines an “investigative consumer reporting agency” as any person who, for a_ fee, assembles employment or insurance information, or information relating to the hiring of dwelling units concerning consumers for 3rd parties for specified purposes. 96 23 (Raymond Declaration,p. 41) SB 1454 —~—2— This bill would redefine an “investigative consumer report” as a report in which specified consumer information is obtained by any means, and an “investigative consumer reporting agency” as any person who, for a fee, assembles any information concerning consumers for 3rd parties. Existing law generally provides that a person may not obtain an investigative consumer report with respect to a consumer unless the person discloses in writing to the consumer that the report will be made and provides other specified information. This bill would require, as a further condition to obtaining an investigative consumer report, that the person certify to the agency that he or she fa) (/) has made the required consumer disclosures and 6) (2) will provide additional specified disclosures if requested by the consumer. The bill would also require an investigative consumer reporting agency that provides an investigative consumer report to a person other than the consumer to make a copy of that report available to the consumer, as specified, for at least 60 days after the date the report is provided to the other person. Existing law provides that consumers have the right to visually inspect all files maintained by an_ investigative consumer reporting agency regarding that consumer, except medical information, as defined. Existing law also provides that consumers have the right to be informed by the user of consumer information of the reasons for any adverse action taken with respect to specified insurance due to information obtained from a person other than an investigative consumer reporting agency, except that the user may withhold medical information, as defined, until the consumer obtains written authorization from the consumer’s physician. This bill would delete both of these exceptions relating to medical information. Existing law provides that investigative consumer reports may not include, among other things, any arrest records, unlawful detainer actions unless the lessor was the prevailing party, as specified, paid tax liens, or other specified items that antedate the report by more than 7 years. This bill would revise the prohibition against inclusion of unlawful detainer actions and_ specify that information 96 24 (Raymond Declaration, p. 42) —3— SB 1454 relating to an arrest, indictment, conviction, civil action, tax lien, or outstanding judgment may not be included in a report unless verified by the agency no more than 30 days prior to the date of the report, and adverse information obtained through a personal interview, as specified, may not be included in a report unless it is either verified by a 2nd party or the _ Interviewee is the best source of the information. Existing law gives consumers the right to dispute inaccurate information contained in an investigative consumer report and to bring an action to recover damages for violations of the act in an amount equal to the greater of actual damages or $300. This bill would add new procedures and notice requirements relating to the investigation of disputes by consumers and the deletion of information in a consumer’s file that is determined to be inaccurate. The bill would also increase the minimum amount of damages recoverable by a consumerfor violations of the act from $300 to $2,500. Existing law specifies that reasonable charges may be imposed upon a consumer to receive a copy of an investigative consumer report relating to that consumer, unless the copy is requested after the taking of an adverse action against the consumerbased onthe report, as specified. This bill would specify the amount of fee, if any, that may be charged to a consumer to receive a copy of an investigative consumer report or other disclosures relating to that consumer. The bill would require investigative consumer reporting agencies to provide a consumer with a copy of his or her investigative consumer report, free of charge, not more often than once a year, if the consumer is unemployed, is seeking employment, receives public welfare assistance, or believes that his or her file contains inaccurate information due to fraud. Thebill would make other related changes. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program:no. 96 25 (Raymond Declaration, p. 43) SB 1454 —4— — C S O e m r y n a n P W N e H W R W W R A W W W W W N U O N N N N N N N N W C A A D A D R H H N A S S H I A R R O N S S S C H K U A T B E O D E The people ofthe State ofCalifornia do enact asfollows: SECTION 1. Section 1786.2 of the Civil Code is amendedto read: 1786.2. The following terms as used in this title have the meaning expressedin this section: (a) The term “person” means any individual, partnership, corporation, limited liability company, trust, estate, cooperative, association, government or governmental subdivision or agency, or other entity. The term “person” as used in this title shall not be construed to require duplicative reporting by any individual, corporation, trust, estate, cooperative, association, government, or governmental subdivision or agency, or other entity involved in the same transaction. (b) The term “consumer” means a natural individual who has made application to a person for employment purposes, for insurance for personal, family, or household purposes, or the hiring of a dwelling unit, as defined in subdivision (c) of Section 1940. (c) The term ‘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 any means. The term does not include a consumer report or other compilation of information that is limited to specific factual information relating to a consumer’s credit record or manner of obtaining credit obtained directly from a creditor of the consumer or from a consumer reporting agency when that information was obtained directly from a potential or existing creditor of the consumer or from the consumer.- (d) The term “investigative consumer reporting agency” means any person who, for monetary fees or dues, regularly engages in whole or in part in the practice of assembling or evaluating information concerning consumers for the purposes of furnishing investigative consumer reports to third parties, but does not include any governmental agency whose records are maintained primarily for traffic safety, law enforcement, or licensing 96 26 (Raymond Declaration, p. 44) O O n r A I N A B W N H Y —5— SB 1454 purposes, or any licensed insurance agent, insurance broker, or solicitor, insurer, or life insurance agent. (e) The term “file,” when used in connection with information on any consumer, means all of the information on that consumer recorded and retained by an investigative consumer reporting agency regardless of howthe informationis stored. (f) The term “employment purposes,” when used in connection with an investigative consumer report, means a report used for the purpose of evaluating a consumer for employment, promotion, reassignment, or retention as an employee. SEC. 2. Section 1786.10 of the Civil Code is amended to read: 1786.10. (a) Every investigative consumer reporting agency shall, upon request and proper identification of any consumer, allow the consumer to visually inspect all files maintained regarding the consumer at the time of the request. (b) All items of information shall be available for inspection, except that the sources of information acquired solely for use in preparing an investigative consumer report and actually used for no other purpose need not be disclosed. However, if an action is brought under this title, those sources shall be available to the consumer under appropriate discovery procedures in the court in which the action is brought. Nothing in this title shall be interpreted to mean that investigative consumer reporting agencies are required to divulge to consumers the sources of investigative consumer reports except in appropriate discovery proceduresas outlined herein. (c) The investigative consumer reporting agency shall also identify the recipients of any investigative consumer report on the consumer that the investigative consumer reporting agency has furnished: (1) For employment or insurance purposes within the two-year period preceding the request. (2) For any other purpose within the one-year period preceding the request. 96 27 (Raymond Declaration, p. 45) SB 1454 — 6 — — C S O W e ~ A I N A N N B W Y N e R C O I D A A R O H A S S S R A R G R O O N B S S Z I R I E R E T D D O O U (d) The identification of a recipient under subdivision (c) shall imclude the name of the recipient or, if applicable, the trade name (written in full) under which the recipient conducts business and, upon request of the consumer, the address and telephone number of the recipient. (ec) The investigative consumer reporting agency shall also disclose the dates, original payees, and amounts of any checks or charges upon which is based any adverse characterization of the consumer, included in the file at the time ofthe disclosure. SEC. 3. Section 1786.11 is added to the Civil Code, to read: 1786.11. Every investigative consumer reporting agency that provides an investigative consumer report to a person other than the consumer shall make a copy of that report available, upon request and proper identification, to the consumer for at least 60 days after the date that the report is provided to the other person. SEC. 4. Section 1786.12 of the Civil Code is amended to read: 1786.12. An investigative consumer reporting agency shall only furnish an investigative consumer report under the following circumstances: (a) In response to the order of a court having jurisdiction to issue the order. (b) In compliance with a lawful subpoena issued by a court of competentjurisdiction. (c) In accordance with the written instructions of the consumerto whom itrelates. (d) To a person that it has reason to believe: (1) Intends to use the information for employment purposes; or (2) Intends to use the information serving as a factor in determining a consumer’s eligibility for insurance or the rate for any insurance; or (3) Intends to use the information in connection with a determination of the consumer’s eligibility for a license or other benefit granted by a governmental 96 28 (Raymond Declaration, p. 46) _ — : S o o n n f h P W h B W W W W W W W W W W N N N N N N b —7— SB 1454 instrumentality required by law to consider the applicant’s financial responsibility or status; or (4) Intends to use the information in connection with an order of a court of competent jurisdiction to provide support where the imposition or enforcement of the order involves the consumer; or (5) Intends to use.the. information in connection with the hiring of a dwelling unit, as defined in subdivision (c) of Section 1940. (e) An investigative consumer reporting agency shall not prepare or furnish an investigative consumer report to a person described in subdivision (d) unless the agency has received the certification under paragraph (4) of subdivision (a) of Section 1786.16 from the person requesting the report. SEC. 5. Section 1786.16 of the Civil Code is amended to read: 1786.16. (a) Any person described in subdivision (d) of Section 1786.12 shall not procure or cause to be prepared an investigative consumer report unless the following applicable conditions are met: (1) If an investigative consumer report is sought in connection with the underwriting of insurance, it shall be clearly and accurately disclosed in writing at the time the application form, medical form, binder, or similar document is signed by the consumer that an investigative consumer report regarding the consumer’s character, general reputation, personal characteristics, and mode of living may be made. If no signed application form, medical form, binder, or similar document is involved in the underwriting transaction, the disclosure shall be made to the consumer in writing and mailed or otherwise delivered to the consumer not later than three days after the report wasfirst requested. (2) If, at any time, an investigative consumer report is sought for employment purposes other than promotion or reassignment, the person procuring or causing the report to be made shall, not later than three days after the date on which the report was first requested, notify the consumer in writing that an investigative consumer 96 29 (Raymond Declaration, p. 47) SB 1454 — 8— O A N A M A R B W N report regarding the consumer’s’ character, general reputation, personal characteristics, and mode of living will be made. This notification shall include the name of the investigative consumer reporting agency conducting the investigation and a summary of the provisions of Section 1786.22. (3) If -an- investigative consumer report is sought in connection with the hiring of a dwelling unit, as defined in subdivision (c) of Section 1940, the person procuring or causing the request to be made shall, not later than three days after the date on which the report was first requested, notify the consumer in writing that an investigative consumer report will be made regarding the consumer’s character, general reputation, personal characteristics, and mode of living. The notification shall also include the name and address of the consumer reporting agencythat will prepare the report. - (4) The person procuring or causing the request to be ‘made shall certify to the investigative consumer reporting agency that the person has made the applicable disclosures to the consumer required by this subdivision and that the person will comply with subdivision (b). (b) Any person described in subdivision (d) of Section 1786.12 shall, upon written request made by the consumer within a reasonable period of time after the receipt by the consumer of the disclosure required by subdivision (a), make a complete and accurate disclosure of the nature and scope of the investigation requested. This disclosure shall be made in writing and mailed or otherwise delivered to the consumer not later than five days after the date the request for the disclosure was received from the consumer or the report was first requested, whicheverislater. (c) The provisions of subdivision (a) shall not apply to an investigative consumer report procured or caused to be prepared by an employer if the purpose of the employer is to determine whether to retain an employee following or in accordance with a good faith belief that the employee is engaged in any criminal activity likely to result in a loss to the employer. 96 30 (Raymond Declaration, p. 48) C O M O I T N N A B W D N E E —9— SB 1454 (d) Those persons described in subdivision (d) of Section 1786.12 of this title shall constitute the sole and exclusive class of persons who may cause an investigative consumerreport to be prepared. SEC. 6. Section 1786.18 of the Civil Code is amended to read: ~ 1786.18. (a) Except as authorized under subdivision (b), no investigative consumer reporting agency shall make or furnish any investigative consumer report containing any of the following items of information: (1) Bankruptcies that, from the date of adjudication, antedate the report by more than 14 years. (2) Suits that, from the date of filing, and satisfied judgments that, from the date of entry, antedate the report by more than sevenyears. (3) Unsatisfied judgments that, from the date of entry, antedate the report by more than 10 years. detainer—actions.—_aness—_thetesser—was—the (4) Unlawful detainer actions where the defendant was the prevailing party or where the action is resolved by settlement agreement. (5) Paid tax liens that, from the date of payment, antedate the report by more than sevenyears. (6) Accounts placed for collection or charged to profit and loss that antedate the report by more than seven years. (7) Records of arrest, indictment, information, misdemeanor complaint, or conviction of a crime that, from the date of disposition, release, or parole, antedate 96 31 (Raymond Declaration, p. 49) JAN RAYMOND LEGISLATIVE | HISTORY & INTENT THIS PAGE INTENTIONALLY LEFT BLANK 32 (Raymond Declaration p. 50) AMENDEDIN ASSEMBLY JUNE18, 1998 AMENDEDIN ASSEMBLY JUNE 8, 1998 AMENDEDIN SENATE MAY12, 1998 AMENDEDIN SENATE APRIL 27, 1998 SENATE BILL No.1454 Introduced by Senator Leslie (Coauthor: Senator Watson) (Coauthors: Assembly Members Bowler, House, Kaloogian, and Prenter) February 2, 1998 An act to amend Sections 1786.2, 1786.10, 1786.12, 1786.16, 1786.18, 1786.20, 1786.24, 1786.26, 1786.30, 1786.40, and 1786.50 of, and to add Section 1786.11 to, the Civil Code, relating to investigative consumerreporting. LEGISLATIVE COUNSEL’S DIGEST SB 1454, as amended, Leslie. Investigative consumer reporting. Existing law, as contained in the Investigative Consumer Reporting Agencies Act, regulates the preparation, disclosure, and use of investigative consumerreports. Existing law defines an “investigative consumer report” as a report in which specified information on a consumer is obtained through personal interviews and defines an “investigative consumer reporting agency” as any person who, for a_ fee, assembles employment or insurance information, or information relating to the hiring of dwelling 95 33 (Raymond Declaration, p. 51) SB 1454 —2— units concerning consumers for 3rd parties for specified purposes. This bill would redefine an “investigative consumer report” as a report in which specified consumer information is obtained by any means, and an “‘investigative consumer reporting agency” as any person who, for a fee, assembles any information concerning consumers for 3rd parties. Existing law generally provides that a person may not obtain an investigative consumer report with respect to a consumer unless the person discloses in writing to the consumer that the report will be made and provides other specified information. This bill would require, as a further condition to obtaining an investigative consumer report, that the person certify to the agency that he or she (1) has made the required consumer disclosures and (2) will provide additional specified disclosures if requested by the consumer. The bill would also require an investigative consumer reporting agency that provides an investigative consumer report to a person other than the consumer to make a copy of that report available to the consumer, as specified, for at least 60 days after the date the report is provided to the other person. Existing law provides that consumers have the right to visually inspect all files maintained by an_ investigative consumer reporting agency regarding that consumer, except medical information, as defined. Existing law also provides that consumers have the mght to be informed by the user of consumer information of the reasons for any adverse action taken with respect to specified insurance due to information obtained from a person other than an investigative consumer reporting agency, except that the user may withhold medical information, as- defined, until the consumer obtains written authorization from the consumer’s physician. This bill would delete both of these exceptions relating to medical information. /t would also prohibit an investigative consumer reporting agency from furnishing an investigative consumer report containing that defined medical information without the consumer s consent. Existing law provides that investigative consumer reports may not include, among other things, any arrest records, 95 34 (RaymondDeclaration, p. 52) —3— SB 1454 unlawful detainer actions unless the lessor was the prevailing party, as specified, paid tax liens, or other specified items that antedate the report by more than 7 years. This bill would revise the prohibition against inclusion of unlawful detainer actions and specify that information relating to an arrest, indictment, conviction, civil action, tax lien, or outstanding judgment may not be included in report unless verified by the agency no more than 30 days prior to the date of the report, and adverse information obtained through a personal interview, as specified, may not be included in a report unless it is either verified by a 2nd party or the intervieweeis the best source of the information. Existing law gives consumers the right to dispute inaccurate information contained in an investigative consumer report and to bring an action to recover damages for violations of the act in an amount equal to the greater of actual damages or $300. This bill would add new procedures and notice requirements relating to the investigation of disputes by consumers and the deletion of information in a consumer’s file that is determined to be inaccurate. The bill would also increase the minimum amount of damages recoverable by a consumerfor violations of the act from $300 to $2,500. Existing law specifies that reasonable charges may be imposed upon a consumer to receive a copy of an investigative consumer report relating to that consumer, unless the copy is requested after the taking of an adverse action against the consumerbased on the report, as specified. This bill would specify the amount of fee, if any, that may be charged to a consumer to receive a copy of an investigative consumer report or other disclosures relating to that consumer. The bill would require investigative consumer reporting agencies to provide a consumer with a copy of his or her investigative consumer report, free of charge, not more often than once a year, if the consumer is unemployed, is seeking employment, receives public welfare assistance, or believes that his or her file contains inaccurate information due to fraud. The bill would make other related changes. 95 35 (Raymond Declaration, p. 53) SB 1454 —4— Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program:no. — C S C O M O A N A R B W N Y W w W W W W W N N N N N N N D N D N N D e e e e e e e e e e A B W N F T O M Y A M B R W N H K H O O W O D Y T A M N B W N H e The people ofthe State of California do enact asfollows: SECTION 1. Section 1786.2 of the Civil Code is amended to read: 1786.2. The following terms as used in this title have the meaning expressedin this section: (a) The term “person” means any individual, partnership, corporation, limited liability company, trust, estate, cooperative, association, government or governmental subdivision or agency, or other entity. The term “person” as used in this title shall not be construed to require duplicative reporting by any individual, corporation, trust, estate, cooperative, association, government, or governmental subdivision or agency, or other entity involved in the same transaction. ~ (b) The term “consumer” means a natural individual who has made application to a person for employment purposes, for insurance for personal, family, or household purposes, or the hiring of a dwelling unit, as defined in subdivision (c) of Section 1940. (c) The term “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 any means. The term does not include a consumer report or other compilation of information that is limited to specific factual information relating to a consumer’s credit record or manner of obtaining credit obtained directly from a creditor of the consumer or from a consumer reporting agency when that information was obtained directly from a potential or existing creditor of the consumer or from the consumer. (d) The term “investigative consumer reporting agency” means any person who, for monetary fees or dues, regularly engages in whole or in part in the practice of assembling or evaluating information concerning consumers for the purposes of furnishing investigative 95 36 (Raymond Declaration, p. 54) i C S w o m o m n 7 y n n h W N S P O W M D I A A H D R O N H E D S O E C B I A U D R B O N H O C H N I A U R O N E —35— SB 1454 consumer reports to third parties, but does not include any governmental agency whose records are maintained primarily for traffic safety, law enforcement, or licensing purposes, or any licensed insurance agent, insurance broker, or solicitor, insurer, or life insurance agent. (ec) The term “file,” when used in connection with information on any consumer, means all of the information on that consumer recorded and retained by an investigative consumer reporting agency regardless of howthe information is stored. (f) The term “employment purposes,” when used in connection with an investigative consumer report, means a report used for the purpose of evaluating a consumer for employment, promotion, reassignment, or retention as an employee. (g) The term “medical information” means information on a persons medical history or condition obtained directly or indirectly from a licensed physician, medical practitioner, hospital, clinic, or other medical or medically relatedfacility. SEC. 2. Section 1786.10 of the Civil Code is amended to read: 1786.10. (a) Every investigative consumer reporting agency shall, upon request and proper identification of any consumer, allow the consumer to visually inspect all files maintained regarding the consumer at the time of the request. (b) All items of information shall be available for inspection, except that the sources of information acquired solely for use in preparing an_ investigative consumer report and actually used for no other purpose need not be disclosed. However, if an action is brought under this title, those sources shall be available to the consumer under appropriate discovery procedures in the court in which the action 1s brought. Nothing in this title shall be interpreted to mean that investigative consumer reporting agencies are required to divulge to consumers the sources of investigative consumer reports except in appropriate discovery proceduresas outlined herein. 95 37 (Raymond Declaration, p. 55) SB 1454 —6— O a o n n A m A B R W N (c) The investigative consumer reporting agency shall also identify the recipients of any investigative consumer report on the consumer that the investigative consumer reporting agency has furnished: (1) For employment or insurance purposes within the two-year period preceding the request. (2) For any other purpose within the one-year period preceding the request. (d) The identification of a recipient under subdivision (c) shall include the name of the recipient or, if applicable, the trade name (written in full) under which the recipient conducts business and, upon request of the consumer, the address and telephone number of the recipient. (ec) The investigative consumer reporting agency shall also disclose the dates, original payees, and amounts of any checks or charges upon which is based any adverse characterization of the consumer, included in the file at the time of the disclosure. SEC. 3. Section 1786.11 is added to the Civil Code, to read: 1786.11. Every investigative consumer reporting agency that provides an investigative consumer report to a person other than the consumer shall make a copy of that report available, upon request and proper identification, to the consumer for at least 60 days after the date that the report is provided to the other person. SEC. 4. Section 1786.12 of the Civil Code is amended to read: 1786.12. An investigative consumer reporting agency shall only furnish an investigative consumer report under the following circumstances: (a) In response to the order of a court having jurisdiction to issue the order. (b) In compliance with a lawful subpoena issued by a court of competentjurisdiction. (c) In accordance with the written instructions of the consumer to whom it relates. (d) To a person that it has reason to believe: 95 38 (Raymond Declaration, p. 56) pe — T o O M m O A T N A N P W N S 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 — 7— SB 1454 (1) Intends to use the information for employment purposes; or (2) Intends to use the information serving as a factor in determining a consumer’s eligibility for insurance or the rate for any insurance; or (3) Intends to use the information in connection with a determination of the consumer’s eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider the applicant’s financial responsibility or status; or (4) Intends to use the information in connection with an order of a court of competent jurisdiction to provide support where the imposition or enforcement of the order involves the consumer; or (5) Intends to use the information in connection with the hiring of a dwelling unit, as defined in subdivision (c) of Section 1940. (ec) An investigative consumer reporting agency shall not prepare or furnish an investigative consumer report to a person described in subdivision (d) unless the agency has received the certification under paragraph (4) of subdivision (a) of Section 1786.16 from the person requesting the report. () An investigative consumer reporting agency shall not furnish an investigative consumer report to a person described in subdivision (d) if that report contains medical information about a consumer, unless the consumerconsents to thefurnishing ofthe report. SEC. 5. Section 1786.16 of the Civil Code is amended to read: 1786.16. (a) Any person described in subdivision (d) of Section 1786.12 shall not procure or cause to be prepared an investigative consumer report unless the following applicable conditions are met: (1) If an investigative consumer report is sought in connection with the underwriting of insurance, it shall be clearly and accurately disclosed in writing at the time the application form, medical form, binder, or similar document is signed by the consumer that an investigative consumer report regarding the consumer’s character, 95 39 (Raymond Declaration, p. 57) SB 1454 — 8— C O N I N D A A W N E general reputation, personal characteristics, and mode of living may be made. If no signed application form, medical form, binder, or similar document is involved in the underwriting transaction, the disclosure’ shall be made to the consumer in writing and mailed or otherwise delivered to the consumer not later than three days after the report wasfirst requested. (2) If, at any time, an investigative consumer report is sought for employment purposes other than promotion or reassignment, the person procuring or causing the report to be made shall, not later than three days after the date on which the report was first requested, notify the consumer in writing that an investigative consumer report regarding the consumer’s_ character, general reputation, personal characteristics, and mode of living will be made. This notification shall include the name of the investigative consumer reporting agency conducting the investigation and a summary of the provisions of Section 1786.22. (3) If an investigative consumer report is sought in connection with the hiring of a dwelling unit, as defined in subdivision (c) of Section 1940, the person procuring or causing the request to be made shall, not later than three days after the date on which the report was first requested, notify the consumer in writing that an investigative consumer report will be made regarding the consumer’s character, general reputation, personal characteristics, and mode of living. The notification shall also include the name and address of the investigative consumerreporting agency that will prepare the report. (4) Fhe person procuring or causing the request to be made shall certify to the investigative consumer reporting agency that the person has made the applicable disclosures to the consumer required by this subdivision and that the person will comply with subdivision (b). (b) Any person described in subdivision (d) of Section 1786.12 shall, upon written request made by the consumer within a reasonable period of time after the receipt by the consumer of the disclosure required by subdivision (a), make a complete and accurate disclosure 95 40 (Raymond Declaration, p. 58) — B W W W W W W W W W W N N N N N N H N L P — —9I— SB 1454 of the nature and scope of the investigation requested. This disclosure shall be made in writing and mailed or otherwise delivered to the consumer not later than five days after the date the request for the disclosure was received from the consumer or the report was first requested, whicheverislater. ~(c) The provisions of subdivision (a) shall not apply to an investigative consumer report procured or caused to be prepared by an employer if the purpose of the employer is to determine whether to retain an employee —foHowing—orin-aceordance—with when there is a good faith belief that the employee is engaged in any criminal activity likely to result in a loss to the employer. (d) Those persons described in subdivision (d)_ of Section 1786.12 of this title shall constitute the sole and exclusive class of persons who may cause an investigative consumerreport to be prepared. SEC. 6. Section 1786.18 of the Civil Code is amended to read: 1786.18. (a) Except as authorized under subdivision (b), no investigative consumer reporting agency shall make or furnish any investigative consumer report containing any of the following items of information: (1) Bankruptcies that, from the date of adjudication, antedate the report by more than +4 /0 years. (2) Suits that, from the date of filing, and satisfied judgments that, from the date of entry, antedate the report by more than seven years. (3) Unsatisfied judgments that, from the date of entry, antedate the report by more than 40 seven years. (4) Unlawful detainer actions where the defendant was the prevailing party or where the action is resolved by settlement agreement. (5) Paid tax liens that, from the date of payment, antedate the report by more than seven years. (6) Accounts placed for collection or charged to profit and loss that antedate the report by more than seven years. (7) Records of arrest, indictment, information, misdemeanor complaint, or conviction of a crime that, 95 4] (Raymond Declaration, p. 59) JAN RAYMOND LEGISLATIVE | HISTORY & INTENT THIS PAGE INTENTIONALLY LEFT BLANK 42 (Raymond Declaration, p. 60) AMENDEDIN ASSEMBLY AUGUST24, 1998 AMENDEDIN ASSEMBLYJUNE18, 1998 AMENDEDIN ASSEMBLYJUNE8,1998 AMENDEDIN SENATE MAY12, 1998 AMENDEDIN SENATE APRIL27, 1998 SENATE BILL No. 1454 Introduced by Senator Leslie (Coauthor: Senator Watson) (Coauthors: Assembly Members Bowler, House, Kaloogian, and Prenter) February 2, 1998 An act to amend Sections 1786.2, 1786.10, 1786.12, 1786.16, 1786.18, 1786.20, 1786.24, 1786.26, 1786.30, 1786.40, and 1786.50 of, and to add Section 1786.11 to, the Civil Code, relating to investigative consumerreporting. LEGISLATIVE COUNSEL’S DIGEST SB 1454, as amended, Leslie. Investigative consumer reporting. Existing law, as contained in the Investigative Consumer Reporting Agencies Act, regulates the preparation, disclosure, and use of investigative consumerreports. Existing law defines an “investigative consumer report” as a report in which specified information on a consumer is obtained through personal interviews and defines an “investigative consumer reporting agency” as any person 94 43 (RaymondDeclaration, p. 61) SB 1454 —2— who, for a fee, assembles employment or insurance information, or information relating to the hiring of dwelling units concerning consumers for 3rd parties for specified purposes. This bill would redefine an “investigative consumer report” as a report in which specified consumer information is obtained by any means, subject to an exception, and an “investigative consumer reporting agency” as any person who, for a fee, assembles any information concerning consumersfor 3rd parties. Existing law generally provides that a person may not obtain an investigative consumer report with respect to a consumer unless the person discloses in writing to the consumer that the report will be made and provides other specified information. This bill would require, as a further condition to obtaining an investigative consumer report, that the person certify to the agency that he or she (1) has made the required consumer disclosures and (2) will provide additional specified disclosures if requested by the consumer. The bill would also require an investigative consumer reporting agency that provides an investigative consumer report to a person other than the consumer to make a copy of that report available to the consumer, as specified, for at least 60 days after the date the report is provided to the other person. Existing law provides that consumers have the mght to visually inspect all files maintained by an_ investigative consumer reporting agency regarding that consumer, except medical information, as defined. Existing law also provides that consumers have the night to be imformed by the user of consumer information of the reasons for any adverse action taken with respect to specified insurance due to information obtained from a person other than an investigative consumer reporting agency, except that the user may withhold medical information, as defined, until the consumer obtains written authorization from the consumer’s physician. This bill would delete both of these exceptions relating to medical information. It would also prohibit an investigative consumer reporting agency from furnishing an investigative 94 44 (Raymond Declaration, p. 62) —3— SB 1454 consumer report containing that defined medical information without the consumer’s consent. Existing law provides that investigative consumer reports may not include, among other things, any arrest records, unlawful detainer actions unless the lessor was the prevailing party, as specified, paid tax liens, or other specified items that antedate the report by more than 7 years. This bill would revise the prohibition against inclusion of unlawful detainer actions and specify that information relating to an arrest, indictment, conviction, civil action, tax lien, or outstanding judgment may not be included in a report unless verified by the agency no more than 30 days prior to the date of the report, and adverse information obtained through a personal interview, as specified, may not be included in a report unless it is either verified by a 2nd party or the interviewee1s the best source of the information. Existing law gives consumers the right to dispute inaccurate information contained in an ivestigative consumer report and to bring an action to recover damages for violations of the act in an amount equal to the greater of actual damages or $300. This bill would add new procedures and notice requirements relating to the investigation of disputes by consumers and the deletion of information in a consumer’s file that is determined to be inaccurate. The bill would also increase the minimum amount of damages recoverable by a consumerfor violations of the act from $300 to $2,500. Existing law specifies that reasonable charges may be imposed upon a consumer to receive a copy of an investigative consumer report relating to that consumer, unless the copy is requested after the taking of an adverse action against the consumerbased on the report, as specified. This bill would specify the amount of fee, if any, that may be charged to a consumer to receive a copy of an investigative consumer report or other disclosures relating to that consumer. The bill would require investigative consumer reporting agencies to provide a consumer with a copy of his or her investigative consumer report, free of charge, not more often than once a year, if the consumer is unemployed, is seeking employment, receives public welfare assistance, or 94 45 (Raymond Declaration, p. 63) SB 1454 —4— believes that his or her file contains inaccurate information dueto fraud. Thebill would makeotherrelated changes. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. — C o m e r D N U M A D W N D W W Y N N N N N N N N N D R e w e e S e e e e Y F D O M ~ A T A N A N M B W N K F C O W W A M N R W N K R The people ofthe State of California do enact asfollows: SECTION 1. Section 1786.2 of the Civil Code is amendedto read: 1786.2. The following terms as used in this title have the meaning expressed in this section: (a) The term “person” means any individual, partnership, corporation, limited liability company, trust, estate, cooperative, association, government or governmental subdivision or agency, or other entity. The term ‘‘person” as used in this title shall not be construed to require duplicative reporting by any individual, corporation, trust, estate, cooperative, association, government, or governmental subdivision or agency, or other entity involved in the same transaction. (b) The term “consumer” means a natural individual who has made application to a person for employment purposes, for insurance for personal, family, or household purposes, or the hiring of a dwelling unit, as defined in subdivision (c) of Section 1940. (c) The term ‘“‘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 any means. The term does not include a consumer report or other compilation of information that is limited to specific factual information relating to a consumer’s credit record or manner of obtaining credit obtained directly from a creditor of the consumer or from a consumer reporting agency when that information was obtained directly from a potential or existing creditor of the consumer or from the consumer. Notwithstanding the foregoing, for transactions between investigative consumer reporting agencies and insurance institutions, agents, or 94 46 (Raymond Declaration, p. 64) O o O n N O P W N —5— SB 1454 insurance-support organizations subject to Article 6.6 (commencing with Section 791) of Chapter 1 of Part 2 of Division I of the Insurance Code, the term “investigative consumer report” shall have the meaning set forth in subdivision (n) ofSection 791.02 ofthe Insurance Code. (d) The term “investigative. consumer reporting agency” means any person who, for monetary fees or dues, regularly engages in whole or in part in the practice of assembling or evaluating information concerning consumers for the purposes of furnishing investigative consumer reports to third parties, but does not include any governmental agency whose records are maintained primarily for traffic safety, law enforcement, or licensing purposes, or any licensed insurance agent, insurance broker, or solicitor, insurer, or life insurance agent. (ec) The term “file,” when used in connection with information on any consumer, means all of the information on that consumer recorded and retained by an investigative consumer reporting agency regardless of howthe information is stored. (f) The term “employment purposes,” when used in connection with an investigative consumer report, means a report used for the purpose of evaluating a consumer for employment, promotion, reassignment, or retention as an employee. (g) The term “medical information” means information on a person’s medical history or condition obtained directly or indirectly from a licensed physician, medical practitioner, hospital, clinic, or other medical or medically related facility. SEC. 2. Section 1786.10 of the Civil Code is amended to read: 1786.10. (a) Every investigative consumer reporting agency shall, upon request and proper identification of any consumer, allow the consumer to visually inspect all files maintained regarding the consumer at the time of the request. (b) All items of information shall be available for inspection, except that the sources of information acquired solely for use in preparing an_ investigative 94 47 (Raymond Declaration, p. 65) P O N T E a g e n c e r s om SB 1454 — 6— W o n n D A U O W N consumer report and actually used for no other purpose need not be disclosed. However, if an action is brought under this title, those sources shall be available to the consumer under appropriate discovery procedures in the court in which the action is brought. Nothing in this title shall be interpreted to mean that investigative. consumer reporting agencies are required to divulge to consumers the sources of investigative consumer reports except in appropriate discovery procedures as outlined herein. (c) The investigative consumer reporting agency shall also identify the recipients of any investigative consumer report on the consumer that the investigative consumer reporting agency has furnished: (1) For employment or insurance purposes within the two-year period preceding the request. (2) For any other purpose within the one-year period preceding the request. (d) The identification of a recipient under subdivision (c) shall include the name of the recipient or, if applicable, the trade name (written in full) under which the recipient conducts business and, upon request of the consumer, the address and telephone number of the recipient. (e) The imvestigative consumer reporting agency shall also disclose the dates, original payees, and amounts of any checks or charges upon which is based any adverse characterization of the consumer, included in the file at the time of the disclosure. SEC. 3. Section 1786.11 is added to the Civil Code, to read: 1786.11. Every investigative consumer reporting agency that provides an investigative consumer report to a person other than the consumer shall make a copy of that report available, upon request and proper identification, to the consumer for at least 60 days after the date that the report is provided to the other person. SEC. 4. Section 1786.12 of the Civil Code is amended to read: 94 48 (Raymond Declaration, p. 66) —7— SB 1454 1786.12. An investigative consumer reporting agency shall only furnish an investigative consumer report under the following circumstances: (a) In response to the order of a court having jurisdiction to issue the order. (b) In compliance with a lawful subpoena issued by a court of competent jurisdiction. (c) In accordance with the written instructions of the consumer to whom it relates. (d) To a person that it has reason to believe: (1) Intends to use the imformation for employment purposes; or (2) Intends to use the information serving as a factor in determining a consumer’s eligibility for insurance or the rate for any insurance; or (3) Intends to use the information in connection with a determination of the consumer’s eligibility for a license or other benefit ~ granted by a governmental instrumentality required by law to consider the applicant’s financial responsibility or status; or (4) Intends to use the information in connection with an order of a court of competent jurisdiction to provide support where the imposition or enforcement of the order involves the consumer; or (5) Intends to use the information in connection with the hiring of a dwelling unit, as defined in subdivision (c) of Section 1940. (ec) An investigative consumer reporting agency shall not prepare or furnish an investigative consumer report to a person described in subdivision (d) unless the agency has received the certification under paragraph (4) of subdivision (a) of Section 1786.16 from the person requesting the report. (f) An investigative consumer reporting agency shall not furnish an investigative consumer report to a person described in subdivision (d) if that report’ contains medical information about a consumer, unless the consumer consents to the furnishing of the report. SEC. 5. Section 1786.16 of the Civil Code is amended to read: 94 49 (Raymond Declaration, p. 67) SB 1454 — $8 — ] 2 3 4 5 6 7 8 9 10 1] 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 AO 1786.16. (a) Any person described in subdivision (d) of Section 1786.12 shall not procure or cause to be prepared an investigative consumer report unless the following applicable conditions are met: (1) If an investigative consumer report is sought in connection with the underwriting of insurance, it shall be clearly and accurately disclosed in writing at the time the application form, medical form, binder, or similar document is signed by the consumer that an investigative consumer report regarding the consumer’s character, general reputation, personal characteristics, and mode of living may be made. If no signed application form, medical form, binder, or similar document is involved in the underwriting transaction, the disclosure shall be made to the consumer in writing and mailed or otherwise delivered to the consumer not later than three days after the report wasfirst requested. (2) If, at any time, an investigative consumer report 1s sought for employment purposes other than promotion or reassignment, the person procuring or causing the report to be made shall, not later than three days after the date on which the report was first requested, notify the consumer in writing that an investigative consumer report regarding the consumer’s’ character, general reputation, personal characteristics, and mode of living will be made. This notification shall include the name of the investigative consumer reporting agency conducting the investigation and a summary of the provisions of Section 1786.22. (3) If an investigative consumer report is sought in connection with the hiring of a dwelling unit, as defined in subdivision (c) of Section 1940, the person procuring or causing the request to’ be made shall, not later than three days after the date on which the report was first requested, notify the consumer in writing that an investigative consumer report will be made regarding the consumer’s character, general reputation, personal characteristics, and mode of living. The notification shall also include the name and address of the investigative consumerreporting agency that will prepare the report. 94 50 (Raymond Declaration, p. 68) — : S D O M I D N A W N H . P W W W W W W W W W W N N N N N N N Y P W W N L b —I— SB 1454 (4) The person procuring or causing the request to be made shall certify to the investigative consumer reporting agency that the person has made the applicable disclosures to the consumer required by this subdivision and that the person will comply with subdivision (b). (b) Any person described in subdivision (d) of Section 1786.12 shall; upon written request made by the consumer within a reasonable period of time after the receipt by the consumer of the disclosure required by subdivision (a), make a complete and accurate disclosure of the nature and scope of the investigation requested. This disclosure shall be made in writing and mailed or otherwise delivered to the consumer not later than five days after the date the request for the disclosure was received from the consumer or the report was first requested, whicheverislater. (c) The provisions of subdivision (a) shall not apply to an investigative consumer report procured or caused to be prepared by an employer if the purpose of the employer is to determine whether to retain an employee when there is a good faith belief that the employee is engaged in any criminal activity likely to result in a loss to the employer. (d) Those persons described in subdivision (d) of Section 1786.12 of this title shall constitute the sole and exclusive class of persons who may cause an investigative consumer report to be prepared. SEC. 6. Section 1786.18 of the Civil Code is amended to read: 1786.18. (a) Except as authorized under subdivision (b), no investigative consumer reporting agency shall make or furnish any investigative consumer report containing any of the following items of information: (1) Bankruptcies that, from the date of adjudication, antedate the report by more than 10 years. (2) Suits that, from the date of filing, and satisfied judgments that, from the date of entry, antedate the report by more than seven years. (3) Unsatisfied judgments that, from the date of entry, antedate the report by more than seven years. 94 51 (Raymond Declaration, p. 69) SENATE JUDICIARY COMMITTEE Adam Schiff, Chairman 1997-98 Regular Session SB 1454 S Senator Leslie B As Amended April 27, 1998 Hearing Date: May 5, 1998 1 Civil Code 4 DLM:lgp 5 4 SUBJECT Investigative Consumer Reports DESCRIPTION This bill would require that persons who use the services of investigative consumerreporting agencies mustdisclose that a report has been commissioned to any person whois the subject the report. It would require the agency to keep any information gatheredfor sixty days. It would also require the agency to disclose the name and address of any additional recipients of the consumer investigative report (such as any other employers, or merchants.) The bill would also create a mechanism for resolving disputes as to the accuracy of information contained in investigative consumerreports. It would require resolution within 30 daysof notice of the dispute. The bill would provide that investigative consumer agencies must consider “all relevant information provided by the consumer"in determining whetherto alter a report. Finally, this bill would increase penalties for violation, suchas failing to notify a person whenan investigative consumer report has been made on them. Thebill would establish a cap on actual damagesof two-thousandfive-hundred dollars ($2,500), up from the current cap of three-hundred dollars ($300). (This analysis reflects amendmentsto be offered in committee.) BACKGROUND The genesis for this bill is the increase in the numberof employers using backgroundchecks on applicants as a way of minimizing potential legal and financial exposure. This trend in employmentreflects a long-standing practice of the rental housing community. Investigative consumer reporting agencies fill the need for such information. An “investigative consumerreport"is a {more) | (Raymond Declaration, p. 71) SB 1454 (Leslie) Page 2 compilation of information collected on an individual applicant’s character, habits, and reputation. Sources of informationfor these reports include interviews with family members, neighbors, associates, as well as court records andcredit bureaus. It is closely related to a consumer credit report, however, unlike credit reports there is no notification given to a person thattheyare the subject of an investigative consumerreport. CHANGESTO EXISTING LAW New Definitions 1. Existing law defines the term “investigative consumer report” as a consumer report in which...is obtained through personalinterviews with neighbors, friends, or associates of the consumerreported on, or others with whom he or she is acquainted or who may have knowledge concerning any of these items of information. This bill would define the term “investigative consumer report”as a consumerreport in which informationis obtained through any means. 2. Existing law excludes private investigators from the definition of “investigative consumerreporting agency." This bill would define the term “investigative consumer reporting agency”to mean any person whofurnishes investigative consumerreports to third parties for consideration. This definition would include private investigators. Requirements for ConsumerInvestigative Reporting Agencies 3. Existing law requires that an investigative consumerreporting agencyshall disclose the recipients of any investigative consumerreport: (1) For employmentor insurance purposes within the two-year period preceding the request. (2) For any other purpose within the six-month period preceding the request. This bill would extend the reporting period in subsection 2 above("for any other purpose”) to within a one-year period preceding the request. It would require all disclosures to contain the nameofthe recipientor, if applicable, the trade name (written in full) under which the recipient conducts business, and their address and telephone number. This bill would require a copy of any report be available to the consumerfor at least 60 days after the date the report is provided to the otherperson. 2 (Raymond Declaration, p. 72) SB 1454 (Leslie) Page 3 This bill would require the investigative consumer reporting agencyto also disclose the dates, original payees, and amounts of any checks or charges attributed to the subject. Limitations on Use of Information Gathered and Use of Reports 4. Existing law provides that an investigative consumer reporting agency shall only furnish an investigative consumerreportif the information is to be used for employment, insurance; or consumer'seligibility for a license; under an order of a court of competentjurisdiction; or in connection with the hiring of a dwelling unit. This bill would: e add a requirementthat the investigative consumer reporting agency may not prepareor furnish an investigative consumerreport unless the subject of the investigation is informedof the report. e state that an investigative consumer reportingagency shall not furnish specified information that is a matter of public record unless the agency has verified the accuracy of the information. e state that an investigative consumer reporting agency. may notrelease adverse information that is obtained through a personal interview, unless either there is independant confirmation, or the person interviewedis the best possible source of the information. Procedure for Contesting and Correcting Data in Reports 5. Existing law providesthat if the completeness or accuracy of any item of information is disputed by a consumerthe investigative consumerreporting agencyshall within a reasonable period of time, without charge,reinvestigate and record the current status of the disputed information. Thisbill would establish a mechanism for dispute resolution, to be completed within 30 days of receiving notice of a dispute regarding the completeness or accuracy of a report (detailed in Comment4.) Penalty for Violation 6. Existing law provides that any investigative consumer reporting agency or user of information that fails to comply with any requirement underthis title is liable in an amountequalto the sum ofall the following: (1) Any actual damages sustained by the consumeras result of the failure or, except in the case of class actions, three hundred dollars ($300), whichever sumis greater... 3 (Raymond Declaration, p. 73) SB 1454 (Leslie) Page 4 This bill would raise the maximum amountallowedas actual damages from three hundred dollars ($300) to two-thousandfive-hundred dollars ($2,500). COMMENT 1. Statement of purpose: greater disclosure means greater accuracy _, Supporters of thismeasurebelievethatthis bill is an important stepin protecting both the consumerand the subject of investigative consumer reports. The author recognizes that investigative consumer reports are a useful tool in selecting appropriate tenants, employees and insurance risks. These reports detail an applicant’s modeofliving, their reputation,their credit and criminal history, or involvementin civil law suit(s). This is all useful information,if true, in making the choice of whether to rent a home to a person, employ them, or extend them a personal insurancepolicy. The information in these reports comes from personalinterviews, as well as public documents. Often the information containedin these reports goes unverified. The author provided the committee with evidence of one man’s problemscausedby erroneousinformation contained in an investigative consumerreport. Mr. Bronti Kelly had his wallet stolen, and his identity assumedbythethief. The thief was arrested numerous times under Mr. Kelly’s name. For a period of three years Mr. Kelly (an Air Force reservist with a clean criminal history) was denied job after job, with no explanation. Finally, he was informed that an investigative consumer reporting agency had compiled a report on him,containing the criminal record of the thief who had stolen his wallet. This information was never verified by the agency, yet used by each companyhe interviewed with to deny him employment. The author points out that under the current schemeoflaw,there is no notification to a subject that a report has been generated on them. The existing penalty of $300 for false information contained in a reportis not a sufficient incentive to insure accuracy. Consequently, there is no method to challenge or check the correctness of these reports. He adds that inaccurate reports obviously harm the potential renter, insured or employee; but they also harm landlords, insurance companies and employers, by denying them access to honest and productive persons. According to the author’s office, the themeofthis legislation is simple, yet will be effective in preventing reoccurrence of such situations as Mr. Kelly’s, "disclosure, disclosure, disclosure." 2. Author’s amendments The author will amendthebill to raise the proposed cap upon actual damages underthis section from $1,000 to $2,500, to mirror the cap on actual damages 4 (Raymond Declaration, p. 74) SB 1454 (Leslie) Page 5 in the sister provision of law dealing with credit reporting agencies. The cap under current law is three-hundred dollars ($300). This amendment came in response to concerns voiced by the Western Center for Law and Povertythat the amountof any penalty should be a deterrentto landlords (and others) failing to notify subjects that an investigative report has been commissioned. Hewill also amendthebill to allow disclosure of the amount and payee of any disputed credit card charge(s) attributedto the subject person, alongvwith the provision in the bill for disclosureof any disputed checks. 3. The bill deletes from existing law a reporting exemption for private investigators and reference to "medical information." The author has madeseveral other proposals to change the existing law. Key among these proposals are removing reference to "medical information” from this section of the code, and deleting the current exemption from the definition of "ConsumerInvestigative Reporting Agencies" for private investigators. The authorof this bill is also carrying legislation which addresses medical records and the appropriate requirements for release of such information. (SB 1382 [Leslie] which is currently pending before this committee.) He would movestatutory references regarding medical information from this section to the Health and Safety Code and Civil Code Sections which deal specifically with medical information. The author also proposes to amendthe definition of ConsumerInvestigative Reporting Agencies, to reflect the important role private investigators (P.1.) play in the gathering andcollecting of personal information used in consumer investigative reports. The current law exempts P.I.s from the definition of ConsumerInvestigative Reporting Agencies. 4. Dispute resolution process This bill would establish a mechanismfor dispute resolution, to be completed within 30 daysof receiving notice of a dispute regarding the completeness or accuracy of a report, as follows: e The agencyshall notify any person who providedthe information in dispute and promptly provideall relevant information regarding the dispute thatis received by the agency from the consumerduring the reinvestigation; e The investigative consumerreporting agency shall review and considerall relevant information submitted by the consumerwith respect to the disputed item of information; 5 (Raymond Declaration, p. 75) SB 1454 (Leslie) Page 6 e An investigative consumer reporting agency may terminate a reinvestigation if the investigative consumer reporting agency reasonably determinesthat the dispute is frivolousorirrelevant; e Upon making a determinationthat a disputeis frivolousorirrelevant, the investigative consumer reporting agency shall notify the consumerof the specific reasons whyit has determined that the consumer’s disputeis frivolous or-irrelevant and providea description of any information required to investigate the disputed information; e Ifa disputed item of information is found to be inaccurate, incomplete, or cannotbe verified by the evidence submitted, the investigative consumer reporting agency shall promptly delete that information from the consumer’s file or modify the information, and shall notify the consumerthat the information has been deleted or modified; e Noinformation may bereinserted in a consumer’sfile after having been deleted pursuantto this section unless the person whofurnished the information verifies that the information is complete and accurate; e if any information deleted from a consumer’sfile is reinserted in thefile, the investigative consumerreporting agency shall promptly notify the consumer of the reinsertion in writing that the disputed information.has been reinserted, and the name, address, and telephone number of any furnisher of information contacted; and a notice that the consumerhastheright to a reinvestigation of the information reinserted by the investigative consumer reporting agency and to add a statementto his or herfile disputing the accuracy or completeness of the information; e Following the deletion of information from a consumer's file pursuantto this section, or followingthefiling of a dispute the investigative consumer reporting agency shall furnish to all parties specified by the consumer notification that the item of information has been deleted or that the item of _information is disputed. In the case of disputed information,the notification shall include the statement or summaryofthe dispute; e Whenevera statementof disputeis filed, the investigative consumer reporting agencyshall, in any subsequentinvestigative consumerreport containing the information in question, clearly note that the information is disputed by the consumer and shall includein the report either the consumer’s statementof dispute or a clear and accurate summary. 6 (Raymond Declaration, p. 76) SB 1454 (Leslie) Page 7 5. This bill is consistant with related state and federal consumer credit acts In California, there are two separate acts which address consumerreports, one which applies to consumercredit reports, and one which deals with investigative consumerreports. In the credit reporting section ofthe law, there are a numberof express disclosure rights subjects of these reports enjoy. For instance,within 30 days.a creditor must notify the applicant ofits action on the application; each applicant denied credit is entitled to a statementof reasons; an applicant may make a written demand on any person furnishing information to the reporter to correct any information which the applicant believes to be inaccurate; the applicant may require the consumercredit reporting agency to indicate on any subsequentreports issued during the dispute that the item or items of information are in dispute; if upon investigation the information is foundto be inaccurate or incorrect, the consumer may require the consumercredit reporting agency to delete or correct the item or items of information. The federal Fair Credit Reporting Act contains both the credit and . investigative report concepts within a single statute. As recently amended, the federal law expressly allowsstates to enforce the information requirements within consumercredit reporting lawsin existence prior to the enactment of the Consumer Credit Reporting Act of 1996, and those provisions of law whichare notin conflict with the federal code. The drafters of this bill have attempted to mirror the federal language, so as to stay within the boundsof state authority to regulate consumerreports. As a result there does not appear to be any preemptionissueraised by thebill. Support: Western Center for Law and Poverty; California Rural Legal Assistance Foundation; Los Angeles Housing Law Project Opposition: None Known HISTORY Source: Author Related Pending Legislation: None Known Prior Legislation: None Known De2b ob ob ob oe ai 7 (Raymond Declaration, p. 77) t JAN RAYMOND ..- LEGISLATIVE | HISTORY & INTENT THIS PAGE INTENTIONALLY LEFT BLANK 8 (Raymond Declaration, p. 78) SENATE RULES COMMITTEE SB 1454 Office of Senate Floor Analyses 1020 N Street, Suite 524 (916) 445-6614 Fax: (916) 327-4478 THIRD READING Bill No: SB 1454 Author: Leslie (R) and Watson (D),et al Amended: 5/12/98 Vote: 21 SENATE JUDICIARY COMMITTEE: 8-0, 5/5/98 AYES: Burton, Haynes, Leslie, Lockyer, O’Connell, Sher, Wright, Schiff NOT VOTING: Calderon SUBJECT: Investigative consumerreports SOURCE: Author DIGEST: This bill requires that persons whousethe services of . investigative consumer reporting agencies must disclose that a report has been commissioned to any person whois the subject of the report. It requires the agency to keep any information gathered for sixty days. It also requires the agency to disclose the name and addressof any additional recipients of the consumerinvestigative report (i.e., any other employers or merchants). This bill also creates a mechanism for resolving disputes as to the accuracy of information contained in investigative consumerreports. It requires resolution within 30 days of notice of the dispute. The bill provides that investigative consumer agencies must consider "all relevant information provided by the consumer" in determining whetherto alter a report. Finally, this bill increases penalties for violation (i.e., failing to notify a person when an investigative consumer report has been made on them). The 9 (Raymond Declaration, p. 79) CONTINUED SB 1454 Page 2 bill establishes a cap on actual damages of $2,500, up from the current cap of $300. ANALYSIS: ~ New Definitions Existing law defines the term ’’ investigative consumerreport’’ as a consumer report in which...is obtained through personal interviews with neighbors, friends, or associates of the consumer reported on, or others with whom he or she is acquainted or who may have knowledge concerning any of these items of information. This bill defines the term ’’investigative consumerreport’ as a consumer report in which information is obtained through any means. Existing law excludesprivate investigators from the definition of investigative consumerreporting agency.” This bill defines the term ’’ investigative consumerreporting agency’’ to mean any person whofurnishes investigative consumerreportsto third parties for consideration. This definition would includeprivate investigators. Requirements for Consumer Investigative Reporting Agencies Existing law requires that an investigative consumerreporting agency shall disclose the recipients of any investigative consumerreport (1) for employmentor insurance purposes within thetwo-year period preceding the request, and (2) for any other purpose within the six-month period preceding the request. This bill extends the reporting period in subsection 2 above ("for any other purpose") to within a one-year period preceding the request. It requires all =. disclosures to contain the nameofthe recipientor, if applicable, the trade & name (written in full) under which the recipient conducts business, and their : address and telephone number. 10 (Raymond Declaration, p. 80) CONTINUED SB 1454 Page 3 This bill requires a copy of any report be available to the consumerfor at least 60 days after the date the report is provided to the other person. This bill requires the investigative consumerreporting agency to also disclose the dates, original payees, and amounts ofany checks or charges ~ attributed to thesubject. Limitations on Use of Information Gathered and Use of Reports Existing law provides that an investigative consumerreporting agency shall only furnish an investigative consumerreport if the information is to be used for employment, insurance; or consumer’s eligibility for a license; under an orderof a court of competentjurisdiction; or in connection with the hiring of a dwelling unit. This bill: 1. Adds a requirementthat the investigative consumer reporting agency may notprepare or furnish an investigative consumerreport unless the subject of the investigation is informed ofthe report. 2. States that an investigative consumer reporting agency shall not furnish specified information that is a matter of public record unless the agency has verified the accuracy of the information. 3. States that an investigative consumer reporting agency may notrelease adverse information that is obtained through a personal interview, unless either there is independent confirmation, or the person interviewedisthe best possible source of the information. Procedure for Contesting and CorrectingData in Reports Existing law providesthat if the completeness or accuracy of any item of information is disputed by a consumerthe investigative consumerreporting agency shall within a reasonable period of time, withoutcharge, reinvestigate and record the currentstatus of the disputed information. This bill establishes a mechanism for dispute resolution, to be completed within 30 days of receiving notice of a dispute regarding the completeness or accuracy of a report, as follows: ; CONTINUED i 1 (Raymond Declaration, p. 81) SB 1454 Page 4 . The agencyshall notify any person whoprovide the information in dispute and promptly provideall relevant information regarding the dispute that is received by the agency from the consumer during the reinvestigation. . The investigative consumer reporting agency shall review and consider all relevant information submitted by the consumerwith respectto the disputed item of information. . An investigative consumer reporting agency may terminate a reinvestigation if the investigative consumerreporting agency reasonably determinesthat the dispute is frivolousor irrelevant. . Upon making a determinationthat a dispute is frivolous or irrelevant, the investigative consumer reporting agency shall notify the consumerof the specific reasons whyit has determined that the consumer’s dispute is frivolous or irrelevant and provide a description of any information required to investigate the disputed information. . Ifa disputed item of information is found to be inaccurate, incomplete, or cannotbe verified by the evidence submitted, the investigative consumer reporting agency shall promptly delete that information from the consumer’s file or modify the information, and shall notify the consumerthat the information has been deleted or modified. . No information may be reinserted in a consumer’s file after having been deleted pursuantto this section unless the person who furnished the information verifies that the information is complete and accurate; . If any information deleted from a consumer’s file is reinsertedin thefile, the investigative consumerreporting agency shall promptly notify the consumerofthe reinsertion in writing that the disputed information has been reinserted, and the name, address, and telephone number of any furnisher of information contacted; and a notice that the consumerhas the right to a reinvestigation of the information reinserted by the investigative consumer reporting agency and to add a statementto his or her file disputing the accuracy or completenessof the information. CONTINUED {2 (RaymondDeclaration, p. 82) zeBe BS con SB 1454 Page 5 8. Following the deletion of information from a consumer’s file pursuantto this section, or following the filing of a dispute the investigative consumerreporting agency shall furnishto all parties specified by the consumernotification that the item of information has been deleted or that the item of information is disputed. In the case of disputed information, the notification shall include the statement or summary of the dispute. 9. Whenevera statementof disputeis filed, the investigative consumer reporting agency shall, in any subsequentinvestigative consumerreport containing the information in question, clearly note that the information is disputed by the consumerandshall includein the report either the consumer’s statement ofdispute or a clear and accurate summary. Penalty for Violation _ Existing law provides that any investigative consumerreporting agency or user of information that fails to comply with any requirement underthis title is liable in an amountequal to the sum any actual damagessustained by the consumeras result of the failure or, except in thecase of class actions, $300, whichever sum is greater. This bill raises the maximum amountallowedas actual damages from $300 to $2,500. Background The genesis for this bill is the increase in the number of employers using backgroundchecks on applicants as a way of minimizing potential legal and financial exposure. This trend in employmentreflects a long-standing practice of the rental housing community. Investigative consumer reporting agenciesfill the need for such information. An “investigative consumer report" is a compilation of information collected on an individual applicant’s character, habits, and reputation. Sources of information for these reports include interviews with family members, neighbors, associates, as well as court records and credit bureaus. It is closely related to a consumercredit report; however, unlike credit reports, there is no notification given to a person thatthey are the subject of an investigative consumerreport. FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No CONTINUED ms 13 (Raymond Declaration, p. 83) SB 1454 Page 6 SUPPORT: (Verified 5/12/98) Western Center for Law and Poverty California Rural Legal Assistance Foundation Los Angeles HousingLaw Project ARGUMENTSIN SUPPORT: Supporters of this bill believe thatit is an important step in protecting both the consumerandthe subject of investigative consumerreports. The author recognizes that investigative consumerreports are a useful tool in selecting appropriate tenants, employees and insurance risks. These reports detail an applicant’s mode of living, their reputation, their credit and criminal history, or involvementin civil law suit(s). This is all useful information,if true, in making the choice of whetherto rent a hometo a person, employ them,or extend them a personal insurance policy. ~ The information in these reports comes from personalinterviews, as well as public documents. Often the information contained in these reports goes unverified. The author provided the committee with evidence of one man’s problems caused by erroneous information contained in an investigative consumer report. Mr. Bronti Kelly had his wallet stolen, and his identity assumedbythe thief. The thief was arrested numerous times under Mr. Kelly’s name. For a period of three years Mr. Kelly (an Air Force reservist with a clean criminal history) was denied job after job, with no explanation. Finally, he was informedthat an investigative consumer reporting agency bad compiled a report on him, containing the criminal record of the thief whohad stolen his wallet. This information was neververified by the agency, yet used by each companyheinterviewed with to deny him employment. According to the author’s office, under the current schemeoflaw,there is no notification to a subject that a report has been generated on them. The existing penalty of $300 for false information containedin a report is not a sufficient incentive to insure accuracy. Consequently, there is no method to challenge or check the correctness of these reports. The author’s office states that inaccurate reports obviously harm the potential renter, insured or employee; but they also harm landlords, insurance companies and employers, by denying them access to honest and productive persons. The author’s office further states that the themeof this legislation is simple, yet CONTINUED 14 (Raymond Declaration, p. 84) SB 1454 Page 7 will be effective in preventing reoccurrence of such situations as Mr. Kelly’s, "disclosure, disclosure, disclosure." RJG:cm 5/13/98 Senate Floor Analyses SUPPORT/OPPOSITION: SEE -ABOVE-. . ee AND eee 15 (Raymond Declaration, p. 85) SB 1454 Page 1 SENATE THIRD READING SB 1454 (Lestie) As Amended June 18, 1998 Majority vote SENATE VOTE: 36-0 CONSUMER PROTECTION 11-0 Ayes: Davis, Morrissey, Alquist, Cedillo, Figueroa, Firestone, Frusetta, Machado, Napolitano, Strom-Martin, Brewer SUMMARY: Modifies the regulations of investigative consumer reporting. Specifically, this bill: 1) .2) 3) 5) 6) 7) 8) 9) 10) Prohibits an investigative consumer reporting agency from preparing or furnishing an investigative consumer report unless the subject of the investigation is informed of the report. Requires that a copy of any report be available to the consumer for at least 60 days after the date the report is provided to the requesting entity. Extends by six months, for a total of one year, the period for which investigative consumer reporting agencies must supply subjects of investigative reports with a record of all requests for reports for purposes other than employment or insurance Screening. Prohibits an investigative consumer reporting agency from furnishing specified information that is a matter of public record unless the agency has verified the accuracy of the information. Prohibits an investigative consumer reporting agency from releasing adverse information obtained through a personal interview, unless there is independent confirmation of the information, or the person interviewed is the best possible source of the information. Establishes a mechanism for resolving disputes over consumer investigative reports. Additionally, requires resolution within 30 days of notice of the dispute. Requires investigative consumer reporting agencies to get the consent of the subject of an investigative report prior to accessing medical information. Reduces the maximum reporting periods on bankruptcy information and other negative financial information from 14 and 10 years to 10 and seven years, respectively. : Revises the definition of the term investigative consumer report to mean a consumer report in which information is obtained through any means. Revises the definition of the term investigative consumer reporting agency to mean any person who furnishes investigative consumer reports to 16 (RaymondDeclaration, p. 86) SB 1454 Page 2 third parties for consideration, including private investigators. 11) Raises the maximum amount allowed as actual damages due to violations of the act from $300 to $2,500. '12) Deletes a reporting exemption for private investigators. . FISCAL EFFECT: .No direct.effect...- COMMENTS: 1) According to the author’s office, the purpose of this bill is to protect individuals from inaccurate and false information contained in consumer investigative reports, which increasingly are used to determine employment, insurance and housing eligibility. This bill seeks to do this by providing consumer remedies such as requiring specified disclosures to consumers who are the subject of investigation, increasing penalties for violations, and establishing a mechanism for resolving disputes over report accuracy. Supporters of this measure believe that this bill is an important step in protecting both the users (j.e., employers, landlords, insurance agencies) and the subjects of investigative consumer reports. These reports develop personal profiles of individuals by detailing their mode of living, their reputation, their credit and criminal histories, and involvement in civil law suit(s). Supporters argue that under the current regulatory scheme there is no notification to a subject that a report has been generated on them and that the existing penalty of $300 for false information is not.a sufficient incentive to insure accuracy. Furthermore, the lack of a method to challenge or check the correctness of these reports further leaves consumers at a disadvantage. 2) The disclosure, right to review and correction, right of dispute, and penalties in this bill are modeled after the requirements based on issuers and users of consumer credit reports. For example, creditors are required to notify applicants of their actions on credit applications within 30 days of receiving an application. Additionally, the increase in actual damages collectable to $2,500 mirrors the penalties in the law regulating credit reporting agencies. 3) According to the author’s office, this bill has been drafted to mirror the language in the recently amended federal Fair Credit Reporting Act, so as to stay within the bounds of state authority to regulate consumer reports. As a result there does not appear to be any pre-emption issue raised by this bill. Analysis prepared by: Sailaja Cherukuri / aconpro / (916) 319-2089 FN 041864 17 (Raymond Declaration, p. 87) SB 1454 Page } SENATE THIRD READING SB 1454 (Leslie) As Amended August 24, 1998 Majority vote SENATE VOTE: 36-0 . CONSUMER PROTECTION - 8-0 Ayes: Davis, Alquist, Figueroa, Firestone, Frusetta, Napolitano, Strom-Martin, Brewer SUMMARY: Modifies the regulations of investigative consumer reporting. Specifically, this bill: 1) Prohibits an investigative consumer reporting agency from preparing or furnishing an investigative consumer report unless the subject of the investigation is informed of the report and a copy of the report is available to the consumer for at least 60 days after it was requested. 2) Extends by six months, for a total of one year, the period for which investigative consumer reporting agencies must supply subjects of investigative reparts with a record of al] requests for reports for purposes other than employment or insurance screening. 3) Prohibits an investigative consumer reporting agency from furnishing specified information that is a matter of public record unless the agency has verified the accuracy of the information. 4) Prohibits an investigative consumer reporting agency from releasing adverse information obtained through a personal interview, unless there is independent confirmation of the information, or the person interviewed is the best possible source of the information. 5) Establishes a mechanism for resolving disputes over consumer investigative reports. Additionally, requires resolution within 30 days of notice of the dispute. 6) Reduces the maximum reporting periods on bankruptcy information and other negative financial information from 14 and 10 years to 10 and seven years, respectively. Provide that the maximum reporting periods on bankruptcy, other negative Financial information, and criminal history do not apply when an investigative consumer report is used for life insurance policies of $150,000 or more, employment screening for a position with an annual salary of $75,000 or more, and rental of a dwelling unit with a monthly rent of $2,000 or more. 8) Revises the definition of the term investigative consumer report to mean a consumer report in which information is obtained through any means. However, exempts reports used for insurance purposes from this definition and instead applies existing law’s definition which means a report in which information is obtained through personal ‘interviews only. 18 (RaymondDeclaration, p. 88) SB_1454 Page 2 9) Raises the maximum amount allowed as actual damages due to violations of the act from $300 to $2,500. FISCAL EFFECT: .No direct effect. COMMENTS: 1) According to the author’s office, the purpose of the bill is to protect individuals from inaccurate and false information contained in consumer investigative reports, which increasingly are used to determine employment, insurance, and housing eligibility. The measure seeks to do this by providing subjects of these reports remedies to dispute inaccurate information. These remedies, which are modeled after the requirements for credit reports, include requiring specified disclosures to subjects of investigation, increasing penalties for violations, and establishing a mechanism for resolving disputes over report accuracy. Consumer investigative reports develop personal] profiles of individuals by detailing their mode of living, their reputation, their credit and criminal histories, and involvement in civil lawsuit(s). Supporters argue that under the current regulatory scheme there is no notification to a subject that a report has been generated on them and that the existing penalty of $300 for false information is not a sufficient incentive to ensure accuracy. 2) Though the latest amendments to the bill granting exemptions to the restrictions on reporting adverse information are not a major change to existing law, they are a significant departure from the high level of consumer protection currently in the bill. It can be arqued that the amendments, by allowing any adverse item, no matter how old, to be reported for transactions where large sums are involved, suggest that middle and upper income individuals should not be afforded the same level of privacy and consumer protection as lower income individuals. In addition, it should be noted that federal law affords al] tenants, regardless of income levels, the same jevel of protection on reporting of adverse information. Thus, the amendments are not consistent with the Federal Fair Credit Reporting Act, though they do stay within the bounds of state authority to regulate investigative consumer reports. Supporters of the amendments argue-that a greater level of scrutiny is necessary because of the risk associated with issuing an insurance policy of $150,000, paying an employee an annual salary of $75,000, or renting a $2,000 apartment. Analysis prepared by: Sailaja Cherukur? / aconpro / (916) 319-2089 FN 042954 19 (RaymondDeclaration, p. 89) SENATE RULES COMMITTEE SB 1454 Office of Senate Floor Analyses 1020 N Street, Suite 524 (916) 445-6614 Fax: (916) 327-4478 UNFINISHED BUSINESS) Bill No: SB 1454 Author: Leslie (R), et al Amended: 6/18/98 Vote: 21 SENATE JUDICIARY COMMITTEE: 8-0, 5/5/98 AYES: Burton, Haynes, Leslie, Lockyer, O’Connell, Sher, Wright, Schiff NOT VOTING:Calderon . SENATE FLOOR: 36-0, 5/21/98 (Consent) ASSEMBLY FLOOR: Not Available SUBJECT: Investigative consumerreports SOURCE: Author DIGEST: This bill requires that persons whousethe services of investigative consumer reporting agencies mustdisclose that a report has been commissioned to any person who Is the subject of the report. It requires the agency to keep any information gatheredfor sixty days. It also requires the agencyto disclose the name and address of any additional recipients of the consumerinvestigative report (i.e., any other employers or merchants). This bill also creates a mechanism for resolving disputes as to the accuracy of information contained in investigative consumerreports. It requires resolution within 30 days of notice of the dispute. The bill provides that investigative consumer agencies must consider "all relevant information provided by the consumer" in determining whetherto alter a report. CONTINUED 20 (Raymond Declaration, p. 90) SB 1454 Page 2 Finally,this bill increases penalties for violation (i.e., failing to notify a person when an investigative consumer report has been made on them). The bill establishes a cap on actual damages of $2,500, up from the current cap of $300. - - Assembly Amendments: 1. Defines "medical information" and requires the consent of the consumer to include samein an investigative report. 2. Clarifies public information that cannot be includedin a report. 3. Provide that the maximum reporting periods on bankruptcy, other negative financial information, and criminal history do not apply when an investigative consumerreport is used for life insurance policies of $150,000 or more, employmentscreening for a position with an annual salary of $75,000 or more, and rental of a dwelling unit with a monthly rent of $2,000 or more. 4. Addsclarifying languagerelative to unlawful retainers. ANALYSIS: New Definitions Existing law defines the term "investigative consumerreport’’ as a consumer report in which...is obtained through personal interviews with neighbors, friends, or associates of the consumerreported on, or others with whom he or she is acquainted or who may have knowledge concerning any of these items of information. This bill defines the term "investigative consumerreport’’ as a consumer report in which informationis obtained through any means. Existing law excludes private investigators from the definition of “investigative consumer reporting agency.” This bill defines the term "investigative consumer reporting agency’’ to mean any person whofurnishes investigative consumerreports to third ~ CONTINUED 21 (Raymond Declaration, p. 91) SB 1454 Page 3 parties for consideration. This definition would includeprivate investigators. This bill defines "medical information" to mean information on a person’s_ medical history or condition obtained directly or indirectly from a licensed - physician, medical practitioner,hospital, clinic or‘other medical or medically related facility. Requirements for ConsumerInvestigative Reporting Agencies Existing law requires that an investigative consumerreporting agencyshall disclose the recipients of any investigative consumerreport (1) for employmentor insurance purposes within the two-year period preceding the request, and (2) for any other purpose within the six-month period preceding the request. This bill extends the reporting period in subsection 2 above (‘for any other purpose") to within a one-year period preceding the request. It requiresall disclosures to contain the nameofthe recipientor, if applicable, the trade name(written in full) under which the recipient conductsbusiness, andtheir address and telephone number. This bill requires a copy of any report be available to the consumerforat least 60 days after the date the report is provided to the other person. This bill requires the investigative consumer reporting agencyto also disclose the dates, original payees, and amounts of any checksor charges attributed to the subject. Limitations on Use of Information Gathered and Use of Reports Existing law provides that an investigative consumerreporting agency shall only furnish an investigative consumerreport if the information is to be used for employment, insurance; or consumer’s eligibility for a license; underan order of a court of competentjurisdiction; or in connection with the hiring of a dwelling unit. CONTINUED 22 (Raymond Deciaration, p. 92) SB 1454 Page 4 This bill: 1. Adds a requirementthattheinvestigative consumerreporting agency may not prepare or furnish an investigative consumerreport unless the subject oftheinvestigationis informedofthe report. " 2. States that an investigative consumerreporting agencyshall not furnish specified information that is a matter of public record unless the agency has verified the accuracy of the information, specifically information that pertains (a) to bankruptcies, (b) specified suits that antedate the report by more than fourteen years, (c) unsatisfied judgments that antedate the report by more than ten years, and (d) unlawfuldetainer sections where the defendant wasthe prevailing party or wherethe action is resolved by settlement agreement. 3. States that an investigative consumerreporting agency may notrelease adverse information that is obtained through a personal interview, unless either there is independent confirmation,or the person interviewedis the best possible source of the information. 4. Prohibits an investigative consumer reporting agency from furnishing a report to a person if that report contains medical information about a consumer, unless the consumer consents to the furnishing of the report. Procedure for Contesting and Correcting Data in Reports Existing law provides that if the completeness or accuracy of any item of information is disputed by a consumerthe investigative consumerreporting agency shall within a reasonable period of time, without charge, reinvestigate and record the currentstatus of the disputed information. This bill establishes a mechanism for dispute resolution, to be completed within 30 days of receiving notice of a dispute regarding the completeness or accuracyofa report, as follows: 1. The agency shall notify any person who provide the information in dispute and promptly provideall relevant information regarding the dispute that is received by the agency from the consumer during the reinvestigation. CONTINUED 23 (Raymond Declaration, p. 93) SB 1454 Page 5 2. The investigative consumerreporting agency shall review and consider all relevant information submitted by the consumerwith respect to the disputed item of information. __3,..Aninvestigativeconsumerreporting agency. may terminate a reinvestigation if the investigative consumer reporting agency reasonably determinesthat the dispute is frivolous or irrelevant. 4. Upon making a determinationthat a dispute is frivolousor irrelevant, the investigative consumerreporting agency shall notify the consumerofthe specific reasons why it has determined that the consumer’s dispute is frivolousor irrelevant and providea description of any information required to investigate the disputed information. 5. Ifa disputed item of information is foundto be inaccurate, incomplete, . or cannotbe verified by the evidence submitted, the investigative consumerreporting agency shall promptly delete that information from the consumer’s file or modify the information,and shall notify the consumerthat the information has been deleted or modified. 6. No information maybereinserted in a consumer’s file after having been deleted pursuant to this section unless the person who furnished the information verifies that the information is complete and accurate; 7. If any information deleted from a consumer’s file is reinsertedin thefile, the investigative consumerreporting agency shall promptly notify the consumerof the reinsertion in writing that the disputed information has been reinserted, and the name, address, and telephone numberof any furnisher of information contacted; and a notice that the consumerhas the right to a reinvestigation of the information reinserted by the investigative consumerreporting agency and to add a statementto his or her file disputing the accuracy or completenessof the information. 8. Following the deletion of information from a consumer’s file pursuantto this section, or following the filing of a dispute the investigative consumer reporting agency shallfurnishto all parties specified by the consumernotification that the item of information has been deleted or that the item of informationis disputed. In the case of disputed &CONTINUED 24 (Raymond Declaration p. 94) SB 1454 . Page 6 information,the notification shall include the statement or summary of the dispute. 9. Whenevera statementof disputeis filed, the investigative consumer reporting agency shall, in any subsequent investigative consumerreport containing the information inquestion, clearly note that the information is disputed by the consumerandshall includein the report either the consumer’s statement of dispute or a clear and accurate summary. Penalty for Violation Existing law provides that any investigative consumer reporting agency or user of information that fails to comply with any requirementunderthistitle is liable in an amount equalto the sum any actual damagessustained by the consumeras a result of the failure or, except in the case of class actions, $300, whichever sum is greater. _ This bill raises the maximum amountallowed as actual damages from $300 to $2,500. Background The genesis for this bill is the increase in the number of employers using backgroundchecks on applicants as a way of minimizing potential legal and financial exposure. This trend in employmentreflects a long-standing practice of the rental housing community. Investigative consumerreporting agencies fill the need for such information. An "investigative consumer report" is a compilation of information collected on an individual applicant’s character, habits, and reputation. Sources of information for these reports include interviews with family members, neighbors, associates, as well as court records and credit bureaus. It is closely related to a consumercredit report; however, unlike credit reports, there is no notification given to a person that they are the subject of an investigative consumerreport. FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No SUPPORT: (Verified 7/2/98) Western Center for Law and Poverty California Rural Legal Assistance Foundation CONTINUED 25 (RaymondDeclaration, p. 95) SB 1454 . Page 7 Los Angeles Housing Law Project ARGUMENTSIN SUPPORT: Supportersofthis bill believe thatit is an importantstep in protecting both the consumerandthe subject of investigative consumerreports. The author recognizesthat investigative " consumer reportsare ausefultoolin selectingappropriate tenants, =— employees andinsurance risks. These reports detail an applicant’s mode of living, their reputation, their credit and criminal history, or involvementin civil law suit(s). This is all useful information, if true, in making the choice of whetherto rent a hometo a person, employ them, or extend them a personalinsurancepolicy. The information in these reports comes from personal interviews, as well as public documents. Often the information containedin these reports goes unverified. The author provided the committee with evidence of one man’s problems caused by erroneous information contained in an investigative consumer report. Mr. Bronti Kelly had his wallet stolen, and his identity assumed by the thief. The thief was arrested numerous times under Mr. Kelly’s name. For a period of three years Mr. Kelly (an Air Forcereservist with a clean criminal history) was denied job after job, with no explanation. Finally, he was informedthat an investigative consumerreporting agency had compiled a report on him, containing the criminal record of the thief who hadstolen his wallet. This information was never verified by the agency, yet used by each company heinterviewed with to deny him employment. According to the author’s office, under the current schemeoflaw,there is no notification to a subject that a report has been generated on them. The existing penalty of $300 for false information containedin a report is not a sufficient incentive to insure accuracy. Consequently, there is no methodto challenge or check the correctness of these reports. The author’s office states that inaccurate reports obviously harm the potential renter, insured or employee; but they also harm landlords, insurance companies and employers, by denying them access to honest and productive persons. The . author’s office further states that the themeofthis legislation is simple, yet a will be effective in preventing reoccurrence of suchsituations as Mr. eo Kelly’s, "disclosure, disclosure, disclosure." RJG:cm/ctl 8/28/98 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE 26 (Raymond Declaration, p. 96) SENT BY: ~ WE-23-95 Wet sVvHhl y SENATE . COMMITTEE.ON JUDICIARY y Bill Lookyer, Chairman’: 0 1993-94 Regular Session. SBvnsce pore Ra-// AB 272 (Areias) 7 a I oO As amended July 7 Hearing date: August 17, 1993 Civil Code 17186 7 ART: GML INVESTIGA’ ON R TING AGENCTE: HISTORY Source: California Public Interest Research Group (CALPIRG) Prior Legislation: None a SUPPORT: California Teamsters Public Affaire Council Opposition: No known Assembly Floor vote: Ayes 47 - Noes 28 KEY ISSUE SHOULD AN INVESTIGATIVE CONSUMER REPORTING AGENCY THAT IS HIRED BY AN EMPLOYER TO INVESTIGATE A POTENTIAL EMPLOYEE, . BE“PROHIBITED FROM SOLICITING INFORMATION THAT WOULD CONSTITUTE DISCRIMINATION IF ASKED BY THE EMPLOYER? PURPOSE Existing law states that it is unlawful for an employer, unless based on a bona fide occupational qualification, to discriminate against an employee because of race, religious creed;color, national origin, ancestry, physical handicap,.medical!condition, marital status, or Sex, (More) 27 (RaymondDeclaration, p. 97) “the repor AB 272 (Areias) Page 2 This bill would prohibit investigative consumer reporting agencies from making:any inquiry in the preparation of investigative consumar reports to be used for employment purposes which, if made by an employer, would constitute an unlawful discriminatory practice. This bill would also require that an employer notify a Job applicant. before hiring an’ agency to perform an investigation, and ~ provide’ theapplicant with a copy of thereportif heor she requested it. Existing law limits some types of information that may be included in investigative consumer reports as well as the length of time : some. information:maybe retained in a consumer's file, except when . ito‘be used in the underwriting of life insurance involving?more than. $100,000 in the .employment of an individual of -an-annual@salaryof $30,000 a year or more, or in the rental of a dwelling:‘which exceeds: $1000 per. month. Currently, information about a: bankruptcy may be reportedonly up to 14 years after . adjudication“in cases other than these. This bill would conform with the ConsumerCredit Reporting Act by limiting the number of years a bankruptcy could remain on file in an investigative consumer report to 10 years after adjudication. The purpose ofthis bill is to make it unlawful for an amployer to indirectly engage in discriminatory hiring practices through an investigative consumer reporting agency. COMMENT i. ta: ed 1 la According to the sponsor, this bill combats the practice a growing:number of employers have adopted, whereby they purchase a consumer investigative report from a consumer reporting firm in:order®‘to:obtain information which would, if asked direotly in-an*‘interview, *be prohibited as discriminatory. The reporting ‘agencies ‘routinely gain information about a consumer by eollelting responses from friends and neighbors of the person. : To the extent that questions regarding race, religion, or disabilities are currently prohibited in job interviews, this bill would equally prohibit them in a consumer investigative report. (More) 28 (RaymondDeclaration, p. 28) AB 272 (Arelas) Page 3 . 2. a 9 ne The legal definition of an investigative consumer reporting agency is any person who, for monetary fees, assembles or evaluates employment or insurance information, or information ralated to the hiring of dwelling units, for the purpose of _ furnishing investigative consumer reports to third parties to be used with respect to consumers for employment, insurance, or hiring of dwelling units. (This is different than consumer credit reporting agencies which investigate consumer credit only.) In practice, investigative consumer reporting agencies prepare subjective reports about the character, general reputation, personalcharacteristics, and lifestyle of conaumers. The information in these reports is obtained by personal interviews (including telephone inquiries) with neighbors, friends, associates, and others. In this way, potential employers, insurers, or landlords indirectly gain information about religion, mental and physical disabilities, medical conditions, and affiliations without making direct inquiries. Then they may use this hearsay information to make crucial decisions relating to the consumer. 3, gimilar New york slation The problem of consumer reporting agencies racently gained notice when numerous job applicants complained about the types ‘of“oral inquiries’: made by Equifax, an investigative consumer ‘reporting,agency. employed by Delta Airlines to investigate ‘potential“employees. Legislation. similar to AB 272 is pending ‘ingNew:York,: where the New York Attorney General has filed a suit*against Equifax for discriminatory practices. 4. 9e3' of” on roh ted Under:this: bi11,. consumer reporting agencies would be prohibited from asking questions which could lead to discrimination: on’ the basis of race, color, religion, Sex, maritalstatus, national origin, ancestry, familial status or mental:or’-physical“disability, but only in reports for employment purposes. Investigative consumerreporting. agencies would not be prohibited: from making thesesorts of inquiries for other purposes,such as*housingand insurance. Landlords, insurance companies, and other users. ofinvestigative services could continue’ to circumvent. anti-discrimination laws. (More) 29 (Raymond Declaration, p. 99) AB 272 (Areias) Page 4 informatio Cape:“teXcourt, © The Fair Employment and Housing Act provides the same standards for: housing and employment. It makes no sgnse to allow investigative’ consumer reporting agencies to continue making discriminatory inquiries for housing purposes when the same standards:apply. SHOULD NOT DISCRIMINATORY INQUIRIES BE PROHIBITED FOR USE IN ‘ALL TYPES:OF INVESTIGATIVE CONSUMER REPORTS, OR AT THE VERY LEAST, SHOULD NOT DISCRIMINATORY INQUIRIES BE PROHIBITED FOR USE IN REPORTS FOR HOUSING PURPOSES IN ADDITION TO REPORTS FOR EMPLOYMENT PURPOSES? i O- otential ove Under this bill, before an employer could request an investigative consumer report for employment purposes, the employer would have to provide a written notice to the potential employee. On this written notice the potential ‘employee would be able to check off a box to receive a copy of the report. If the potential employee: desired a copy, the . employer: would be responsible for requesting an additional copy from the agency and providing it at no charge. ‘SHOULD NOT.NOTICE TO THE CONSUMER BE REQUIRED BEFORE ANY INQUIRY IS MADE FOR ANY PURPOSE, OR AT THE VERY LEAST, BEFORE ‘INQUIRIES.‘ARE MADE FOR HOUSING PURPOSES IN ADDITION TO EMPLOYMENT PURPOSES? Additionally, the -bill provides that the user and the consumer shall be given copies of the report contemporaneously, .However,”since investigative consumer reports are subjective in nature, there is some concern that the consumer should be provided -with a copy of the report prior to the user. In the past,. consumers have been adversely affected when reports included jinaccurate information. For instance, one employee lost ‘hisjob after Equifax included a false drug charge in ‘their! investigative report, If the employee had received a eport in advanoe, he could have proven thecopy “of. the naccurate. Instead, he was forced to take tha SHOULDNOT’CONSUMERS BE PROVIDED WITH COPIES OF INVESTIGATIVE CONSUMER REPORTS PRIOR TO USERS? Salary | ada a1 t ds a. te This section: of the:‘civil Code ‘limits investigative consumer reportingagencies:in°thetypes of information they may include in reports... For instance, bankruptoles and unsatisfied judgmentsmay only”be:‘reported ‘for up to 10 years, and records (More) 30 (Raymond Declaration, p. 100) AB 272 (Aredas) Page 5 of arrests and indictments may not be reported. However, these limitations do not apply under special circumstances. One circumstance which makes these protective’ provisions inapplicable is if the individual’ is being investigated for a ‘job with a salary of more than §30,000. When this legislation ¥Was enacted in 1975, salaries of $30,000 --or-more-were paid only to highly professional employees. According to the Department of Finance Consumer Price Index,a salary of $30,000 in 1975 would be worth $85,400 today. The intent of the legislature at the time was to allow for more thorough’ checks on higher paid workers. However, in 1993, a much larger percentage of the population currently earns more than $30,000 per year. Since this salary figure has never been adjusted, many people who this law originally covered are no longer protected by these limitations, SHOULD NOT THIS SALARY FIGURE BE UPDATED ACCORDING TO THE CONSUMER PRICE INDEX? This bill would conform the laws governing investigative consumer: reporting agencies-to recent changes in the statutes regarding consumer credit reporting agencies. Currently, investigative consumer reporting agencies may not include in a report, information about bankruptcies which antedate the report by more than 14 years. This bill would change the length ‘of time a bankruptcy could remain in a report to 10 years:after adjudication, the same time period as consumer creditreporting agencies. KAKKKARKEES (More) 31 (Raymond Declaration, p. 101) SB 1454 Page 1 Date of Hearing: June 23, 1998 ‘SUBJECT: Modifies the regulationof investigative consumer reporting ASSEMBLY COMMITTEE ON CONSUMER PROTECTION, GOVERNMENTAL EFFICIENCY, AND ECONOMIC DEVELOPMENT Susan Davis, Chair SB 1454 (Leslie) - As Amended: June 18, 1998 SUMMARY: Specifically, this bill: 1) 5) 7) 10) 11) Prohibits an investigative consumer reporting agency from preparing or furnishing an investigative consumer report unless the subject of the investigation is informed of the report. Requires that a copy of any report be available to the consumer for at least 60 days after the date the report is provided to the requesting entity. . Extends by six months, for a total of one year, the period for which investigative consumer reporting agencies must supply subjects of investigative reports with a record of all requests for reports for purposes other than employment or insurance screening. Prohibits an investigative consumer reporting agencyfrom furnishing specified information that is a matter of public record unless the agency has verified the accuracy of the information. Prohibits an investigative consumer reporting agency from releasing adverse information obtained through a personal interview, unless there is independent confirmation of the information, or the person interviewed is the best possible source of the information. Establishes a mechanism for resolving disputes over consumer investigative reports. Additionally, requires resolution within 30 days of notice of the dispute. Requires investigative consumer reporting agencies to get the consent of the subject of an investigative report prior to accessing medical information. Reduces the maximum reporting periods on bankruptcy information and other negative financial information from 14 and 10 years to 10 and seven years, respectively. Revises the definition of the term investigative consumer report to mean a consumer report in which information is obtained through any means. Revises the definition of the term investigative consumer. reporting agency to mean any person who furnishes investigative consumer reports to third parties for consideration, including private investigators. Raises the maximum amount allowed as actual damages due to violations of the act from $300 to $2,500. 32 (Raymond Declaration, p. 102) SB 1454 Page 2 12) Deletes a reporting exemption for private investigators. EXISTING LAW: 1) Provides that if the completeness or accuracy of any item of information is disputed by a subject of a report, the investigative consumer reporting agency shall within a reasonable period of time, without charge, re-investigate and recordthe current status of the disputed information. 2) ‘Requires an investigative consumer reporting agency to disclose the recipients of any investigative consumer report for employment or insurance purposes within the two-year period preceding the request and for any other purpose within the six-month period preceding the request. 3) Provides that an investigative consumer reporting agency shall only furnish an investigative consumer report if the information is i) to be used for employment, insurance, licensure, or in connection with the hiring of a dwelling unit or ii) required by court order. 4) Provides that any investigative consumer reporting agency or user of information that fails to comply with any requirement under this title is liable for actual damages sustained by the subject of a report or $300, whichever is greater. 5) Allows consumer investigative reporting agencies to report bankruptcy information that is up to 14 years old and other adverse financial information (unsatisfied judgments) that is up to 10. years old. 6) Defines the term investigative consumer report as a consumer report in which information is obtained through personal interviews with neighbors, friends, or associates of the consumer reported on, or others with whom he or she is acquainted or who may have knowledge concerning any of these items of information. 7) &Excludes private investigators from the definition of investigative consumer reporting agency. FISCAL EFFECT: No direct effect. COMMENTS : 1) Measure Intended to Protect Consumers From Inaccurate Personal Profiles According to the author’s office, the purpose of the bill is to protect individuals from inaccurate and false information contained in consumer investigative reports, which increasingly are used to determine employment, insurance, and housing eligibility. The measure seeks to do this by strengthening consumers’ rights to have only accurate information collected about them and providing remedies such as requiring specified disclosures to consumers who are the subject of investigation, increasing penalties for violations, and establishing a mechanism for resolving disputes over report accuracy. Supporters of this measure believe that this bill is an important step in protecting both the users (employers, landlords, insurance agencies) and the subjects of investigative consumer reports. Investigative consumer reports often serve as a screening tool in selecting tenants, employees, 33 (Raymond Declaration, p. 103) 2) 3) 4) SB_ 1454 Page. 3 and insurance risks. These reports develop personal profiles of individuals by detailing their mode of living, their reputation, their credit and criminal history, or involvement in civil law suit(s) . The information in these reports comes from personal interviews and public documents. However, a problem arises when the information contained in these reports, which often is of a subjective nature, goes unverified, with a potentially devastating impact on an individual's life. For example, theauthor’soffice presents. a case where an. individual... who had - - oe his identity assumed by a thief, was unable to find employment for several years due to a erroneous report which labeled him a thief because it contained the criminal record of the individual who has stolen his wallet. This information was never verified by the investigative agency, yet was used by each company he interviewed with to deny him employment. However, the individual was never informed that an investigative consumer reporting agency had compiled a report on him and thus had no opportunity to defend his name. , Supporters argue that under the current regulatory scheme there is no notification to a subject that a report has been generated on them and that the existing penalty of $300 for false information contained in a report is not a sufficient incentive to insure accuracy. Furthermore, the lack. of a method. to challenge or check the correctness of these reports further leaves consumers at a disadvantage. Measure Modeled After State Credit Reporting Law The disclosure, right to review and correction, right of dispute, and penalties in the’ bill are modeled after the requirements based on issuers and users of consumer credit reports. For example, creditors are required to notify applicants of their actions on credit applications within 30 days of receiving an application. Additionally, the increase in actual damages collectable to $2,500 mirrors the penalties in the law regulating eredit reporting agencies. Measure Conforms with Federal Law As recently amended, the federal Fair Credit Reporting Act allows states to enforce the information requirements within consumer credit reporting laws in existence prior to the enactment of the Consumer Credit Reporting Act of 1996, and those provisions of law which are not in conflict with the federal code. According to the author’s office, the bill has been drafted to mirror the federal language, so as to stay within the bounds of state authority to regulate consumer reports. As a result there does not appear to be any pre-emption issue raised by the bill. Investigative Reports Now Subject to Shorter Reporting Periods Existing state and federal law (California Consumer Reporting Agencies Act and the Federal Fair Credit Reporting Act) contain maximum reporting periods for specified information. Specifically, these laws, which apply to credit reports, limit consumer reporting agencies to a maximum reporting period of 10 years on bankruptcy information and seven years on other negative financial information, such as unsatisfied judgments. The most recent amendments to the bill apply the same reporting restrictions to investigative reports. 34 (Raymond Declaration, p. 104) SB 1454 Page 4 REGISTERED SUPPORT / OPPOSITION: Support Western Center for Law and Poverty California Rural Legal Assistance Foundation__ Los Angeles Housing Law Project Opposition None on file Analysis prepared by: Sailaja Cherukuri / aconpro / (916) 319-2089 35 (Raymond Declaration, p. 105) JAN RAYMOND LEGISLATIVE | HISTORY & INTENT THIS PAGE INTENTIONALLY LEFT BLANK 36 (RaymondDeclaration, p. 106) -ENROLLED BILL REPORT Business, Transportation and Housing Agency DEPARTMENT ‘AUTHOR BILL NO. Department of Financial Institutions Leslie and five coauthors SB 1454 RELATED BILLS DATE LAST AMENDEDSPONSOR None August 24, 1998 SUBJECT _| Investigativeconsumerieporting.._..... . 1. SUMMARY: This bill would make numerous changes to the Investigative Consumer Reporting Agencies Act. 2. ANALYSIS: A. Policy: Existing law defines an “investigative consumer report” to mean a consumerreport in which information of the consumer’s character, general reputation, personal characteristics, or mode of living is obtained through personalinterviews. Existing law defines an “investigative consumer reporting agency” as any person, whofor a fee, assembles any information concerning consumers for specified purposes. This bill would redefine “investigative consumer report” to mean a report in which information on a consumer’s character, general reputation, personal characteristics, or mode ofliving is obtained through any means. This bill defines “investigative consumer reporting agency” as any person, whofor a fee, assembles information concerning consumersfor 3™ parties. This bill creates an exception to the definition of “investigative consumer report” for transactions betweeninvestigative consumer reporting agencies and insuranceinstitutions, agents, or insurance-support organizations by having the meaning of “investigative consumer report” defined as found in Section 791.02 of the insurance Code ("a consumerreport or portion thereof in which information about a natural person’s character, general reputation, personal characteristics or modeof living is obtained through personal interviews with the person’s neighbors,friends, associates, acquaintances or others who may have knowledge concerning such itemsof information”). VOTE: ASSEMBLY FLOOR Aye 7 3 VOTE: SENATE FLOOR Aye 3 6 Policy Comte. Aye 1CP, GE & ED Policy Q Comte. Judiciary Aye RECOMMENDATION: SIGN LORpyMeLUNG5 Yousd 7Arar 3 DATE BY: 4 DATE:Moudll 7.4.44 | 37 (Raymond Deciaration, p. 107) Enrolled Bill Report SB 1454 Page 2 Existing law provides that a person maynot obtain an investigative consumerreport with respect to a consumerunless the person discloses in writing to the consumerthat the report will be made. This bill would require as a further condition for obtaining an investigative consumer report, that the person obtaining the report certify that they have madethe required consumerdisclosures. The consumerreporting agency would also be required to make the report available to the . consumerfor at least 60 days after the report is provided to the other person. This bill prohibits an investigative consumer reporting agency from furnishing an investigative consumerreport,if that report contains medical information about a consumer, to a person that: 1) intends to use the information for employment purposes; 2) intends to use the information as a factor in determining a consumer'seligibility for insurance or the rate for insurance; 3) intends to use the information in determining the consumer'seligibility for a license or other benefit granted by a governmental agency; 4) intends to use the information in an order of a court to provide support where enforcement of the order involves the consumer; or 5) intends to use the information in connection with a rental consideration. However, the consumer may consent to the furnishing of such a report. Existing law provides that investigative consumer reports may not include, amongotherthings, _....... bankruptciesthat antedate the report by more than 10 years, and arrest records,indictment, complaints, conviction of a crime, suits, paid tax liens, accounts placed for collection, unsatisfied judgments and satisfied judgments that antedate the report by 7 years. This bill exempts from this prohibition investigative consumer reports used in the following transactions: underwriting oflife insurance involving $150,000 or more; employmentof an individual at an annual salary that exceeds $75,000: or the rental of a dwelling unit that exceeds $2,000 per month. This bill specifies that information relating to an arrest, indictment, conviction, civil action, tax lien or outstanding judgment may notbe included in a report unless verified by the agency not more than thirty days prior to the date of the report, and adverse information obtained through a personal interview, may not be included unless verified by a second party or the intervieweeis the best source of the information. , Existing law gives consumers the right to dispute inaccurate information containedin an investigative consumer report and bring an action to recover damagesforviolationsof the actin an amount equal to the greater of actual damages or $300. This bill adds new procedures and notice requirementsrelating to the investigation of disputes by consumers and the deletion of information in a consumer'sfile that is determined to be inaccurate, and increases the minimum amount of damages recoverable by a consumerfor violations of the act from $300 to $2,500. Existing law provides that a reasonable fee may be charged to a consumerto receive a copy of the consumerinvestigative report. This bill-would specify the cost of such report not to exceed $8, and provide a copyfree of charge not more than onceevery year to a consumer whois unemployed, seeking employment, receives public welfare assistance, or believes their file contains inaccurate information due to fraud. B. Fiscal: 2 None 38 (Raymond Declaration, p. 108) Enrolled Bill Report SB 1454 Page 3 3. SPONSOR: None ~4. PRO & CON: me ee nena rn me — A. Arguments in Support of theBill: This bill will protect individuals from inaccurate and false information contained in consumer investigative reports by providing consumeraccessto the reports generated, providing remedies to dispute inaccurate information, increasing penalties for violations, and establishing a mechanism for resolving disputes over report accuracy. Permitting any adverse item to be reported for large transactions will provide a greater level of investigation commensurate with the risks associated with these transactions. _ B. Arguments in Opposition to the Bill: By allowing any adverse item, no matter how oid, to be reported for transactions where large sumsare involved, suggests that middle and upper incomeindividuals should not be afforded the same level of privacy and consumer protection as lower income individuals. 5. RECOMMENDATION: The Department of Financial institutions recommends that the Governor Sign this bill. The bill will ‘ protect individuals from inaccurate and false information contained in consumerinvestigative reports by providing consumer access to the reports generated, providing remedies to dispute inaccurate information, increasing penalties for violations, and establishing a mechanism for resolving disputes over report accuracy. 6. FOR FURTHER INFORMATION CONTACT: Name Jan Lynn Owen Title Deputy Commissioner Office Phone (916) 322-0282 Number Home Phone Number (916) 455-8420 Pager (800) 718-4864 Cell Phone 214-0404 39 (Raymond Declaration, p. 109) NO ENROLLEDBILL REPOS? REQUIRED _TL:gtc Busmgps, Transportation & Housing Agency DEPARTMENT AUTHOR BILL NO. CORPORATIONS ; Leslie SB 1454 SUBJECT , DATE LAST AMENDED Investigative Consumer Reporting August 24, 1998 x No Concern. Technical Bill. No program orfiscal changes to existing program. No analysis required. No recommendation on signature. Bill as enrolled no longer within scope of responsibility or program of this Department. Comments: In general, SB 1454 makes various changes to the Investigative Consumer Reporting Agencies Act to strengthen consumers’ rights by having only accurate information collected about them, providing enhanced remedies such as requiring specified disclosures to consumers who are the subject of investigation, increasing penalties for violations, and establishing a mechanism for resolving disputes over report accuracy. Accordingly, this bill does not impact the Department of Corporations ("DOC") as the DOC does not administer the Investigative Consumer Reporting Agencies Act and the bill does not affect any of the laws administered by the Doc. Deference is given to the State and Consumer Services Agency (e.g., Department of Consumer Affairs) for a recommendation on SB 1454. Contact: Timothy L. Le Bas Title: Senior Corporations Counsel Phone No.: (916) 322-3977 DEPARTMENT N .D 4 43 AGENCY LM3. BY: DATE: DALE E. BONNER Cap. , / Commissioner of 2Mi L q y 7 i - / . & 2 40 (Raymond Declaration, p. 110) Analyst Name: Tara Powers Phone Number: 323-5450 STATE AND CONSUMER SERVICES: AGENCY NO ENROLLED BILL REPORT REQUIRED DEPARTMENT © AUTHOR BILL NUMBER . CONSUMER AFFAIRS Leslie SB 1454 t t 11 Technicalbill - no program orfiscal changes to existing program. No analysis required.. No.recommendation on signature. /_/ Bill as enrolled no longer within scope of responsibility or program of this Department. 1X! Analysis not required of this bill. Not within the scope of responsibility of this department. Existing law: e Establishes requirements for investigative consumerreports and investigative consumer reporting agencies. This bill would: Make substantiveand technical changesto that, such as: e Changing the definition of ‘investigative consumerreports” from information ona consumer’s character, general reputation, personal characteristics, or modeofliving obtained from personal interviews with neighbors, friends, or associates of the consumerreported on,to information obtained through any means e Exempting insuranceinstitutions from the law. e Deleting a provision that prohibits consumers fromviewing medical information contained in their investigative consumerreports. e Requiring the person asking for the report to provide the consumerwith specified disclosures. e Reducing the maximum reporting periods for bankruptcy information from 14 years to 10 years, and for other negative financial information from 10 years to sevenyears, but providing that the maximum reporting periods on bankruptcy, other negative financial information, and criminal history do not apply whenaninvestigative consumerreport is usedforlife insurance polices of $150,000 or more, employmentof an individual who earns $75,000 or more, or rental of a dwelling unit with a monthly rent of $2,000 or more. RECOMMENDATION DEFER to the Department of Financial Institutions. eee aR feeMee qe 4] (Raymond Declaration, p. 111) SB 1454 Page 2 e Prohibiting investigative consumerreporting agencies from releasing adverse - information obtained from an interview, unless there is independent confirmation of the information, or the personinterviewedis the best sourceof information. -e Proscribeadditionalproceduresfor resolving disputes, and requiring resolution of these disputes within 30 days of the notice ofthe dispute. e Increasing the minimum damagesrecoverable by.a consumer(as an alternative for actual damagesincurred)for a violation of the law from $300 to $2,500. The Department of ConsumerAffairs has no concerns with SB 1454, and it has no impact on the Bureau of Security and Investigative Services. We DEFERto the Department of Financial Institutions, which is completing an enrolled bill report with a recommendation. 42 (Raymond Declaration, p. 112) CONSUMER PROTECTION—CREDITORS—PERSONAL..., 2001 Cal. Legis. Serv... 2001 Cal. Legis. Serv. Ch. 354 (A.B. 655) (WEST) CALIFORNIA 2001 LEGISLATIVE SERVICE 2001 Portion of 2001-2002 Regular Session Additionsare indicated by <<+ Text+>>; deletions by <<- * * * >>, Changesin tables are made but not highlighted. CHAPTER 354 A.B. No. 655 CONSUMER PROTECTION—CREDITORS—-PERSONAL IDENTIFICATION INFORMATION AN ACT to amend Sections 1785.10, 1785.16, 1786, 1786.2, 1786.10, 1786.11, 1786.16, 1786.18, 1786.20, 1786.24, 1786.26, 1786.28, 1786.50, and 1786.52 of, to add Sections 1785.11.8, 1785.16.1, 1785.16.2, 1785.20.3, 1786. 29, and 1786.53 to, to add Title 1.81.3 (commencing with Section 1798.92) to Part 4 of Division 3 of, and to repeal Article 3 (commencingwith Section 1786.40) of Title 1.6A of Part 4 of Division 3 of, the Civil Code, relating to personal identifying information. [Filed with Secretary of State September 27, 2001.} ~ LEGISLATIVE COUNSEL'S DIGEST AB 655, Wright. Personal identifying information:identity theft. Existing law requires consumercredit report agencies to allow a consumerto elect to have his or her name removed from any list provided by the consumercredit reporting agencies for firm offers of credit that are not initiated by the consumer, as specified. This bill would permit a consumerto specify, either verbally or in writing, that his or her nameshall be removed from lists that a consumercredit reporting agency furnishesfor credit card solicitations for a minimum of two years, and that consumer credit reporting agencies would be required to inform a consumerofthis option, as specified. Existing law provides a process by which a consumer may dispute the accuracy of information in a consumercredit report. Existing law requires a consumercredit reporting agency to promptly and permanently block certain information when a consumerprovides a valid copy of a police report indicating that another person has unlawfully used the consumer's personal identifying information. This bill additionally would require a consumer credit reporting agency to promptly and permanently block certain information when a consumerprovides a valid copy of a Department of Motor Vehicles investigative report indicating that another person has unlawfully uscd the consumer's personal identifying information. Thebill would setforth requirements regarding the unblocking of certain information by a consumer reporting agencyafter an allegation of identity theft by a consumer, and would permit a consumer reporting agency to disregard a consumer's version of disputed information, as specified. This bill would also require that a consumer credit reporting agencydelete from a consumercredit report inquiries for credit reports that wereinitiated as the result of identity theft. Existing law places certain requirements on users of consumercredit reports, including the right of the consumerto prohibit the use of information in a consumer's files in connection with credit transactions not initiated by the consumer. This bill would require any person who uses a consumercredit report in connection with a credit transaction and who discovers that the address on the consumer credit report docs not match the address of the consumer requesting or being offered credit to take reasonable steps to verify the accuracy of the consumer's address, as specified, and confirm that the WestlawNext @ 2013 Thomson Reuters. No claim tooriginal US. Gavernmant Works. 1 1 CONSUMER PROTECTION—CREDITORS—PERSONAL..., 2001 Cal. Legis. Serv.... credit transaction is notthe result of defined identity theft. This bill would create similar requirements for any person who uses a consumercredit report in connection with a credit transaction and whoreceives specified notification from a consumer credit reporting agency that information in the report has been blocked as the result of an identity theft. This bill would provide that a consumer damaged bya failure to fulfill the above described requirements would have a claim against the person using the report, as specified. Existing law restricts the dissemination of certain types of personal identifying information by specific professions and businesses. Existing law also provides, generally, that a consumeris not liable on debt incurred by a 3rd party, and limits a consumer's liability on the unauthorized use of a credit card,.as.defined. — ae cee This bill would allow a personto bring a cause ofaction against a claimantto establish that the person is a victim ofidentity theft, as defined; or if the claimant has brought a cause ofaction to recover onits claim, the bil] would allow the person to file a cross complaintto establish that the person is a victim of identity theft in connection with the claim. This bill would allow the victim to obtain a judgment that, amongother things, declares the victim is not obligated on these claims,that declares void any security interests in the victim's property, that provides for an injunction restraining attempts to collect on these claims, that may include actual damages and equitable relief as the court deems appropriate, that may include a civil penalty up to $30,000 and that awards reasonable attorney'sfees and costs. This bill would allow the victim to join any person purporting to havea claim thatthe victim maintainsarises from identity theft in the action regardless ofwhetherthose claims arise out of the same transaction or occurrence. The bill would also provide for continuing jurisdiction in these actions and the limitation on bringing actionsor joining defendants with respect to the action. Existing law regulates the activities of investigative consumer reporting agencies, as specified. This bill would revise and recast various provisions governing the activities of investigative consumerreporting agencies. Amongother things, it would expand the definition of “investigative consumer reporting agency,” increase disclosure requirements, eliminate certain exemptions, increase penalties for violations, and would makerelated changes. The bill would prohibit creditors from selling a consumer debt to a debt collectar, except as specified,if the consumer'sfile with a consumercredit reporting agencyis blockedorthe creditor has reason to believe the consumeris a victim ofidentity theft. The bill would also prohibit persons who gatherspecified information on a consumerin lieu ofusingtheservices ofan investigative consumerreporting agency to providethat information to the consumer. This bill would incorporate additional changes in Section 1785.10 of the Civil Code proposed by AB 488 to become operative only if this bill and AB 488 are both enacted on or before January |, 2002, each bill amends Section 1785.10 of the Civil Code,andthis bill is enactedlast. The peopleof the State of California do enactas follows: SECTION 1]. Section 1785.10 of the Civil Code is amendedto read: << CA CIVIL § 1785710 >> 1785.10. (a) Every consumercredit reporting agency shall, upon request and properidentification of any consumer,allow the consumerto visually inspectall files maintained regarding that consumeratthe timeofthe request. Es (b) Every consumer reporting agency, upon contact by a consumer by telephone,mail, or in person regarding information E which may be contained in the agency files regarding that consumer, shall promptly advise the consumer of his or herrights under Sections <<+1785.11.8,+>> 1785.19<<+,+>> and 1785.19. 5, and ofthe obligation of the agency to provide disclosure of thefiles in person, by mail, or by telephone pursuantto Section 1785.15, including the obligation of the agency to provide a decoded written version ofthe file or a written copy of the file with an explanation ofany code,including any credit score used, and the key factors, as defined in Section 1785.15.1, if the consumer so requests that copy. The disclosure shall be provided in the mannerselected by the consumer, chosen from among any reasonable meansavailable to the consumer credit reporting agency. awNext © 2013 Thomson Reuters. No claimta arigina! U.S. Government Works. 2 : - 5 . . CONSUMER PROTECTION—-CREDITORS—PERSONAL..., 2001 Cal. Legis. Serv.... The agency shall determine the applicability of subdivision (1) of Section 1785.17 and, where applicable, the agency shall inform the consumerofthe rights under that section. (c) All information on a consumerin the files of a consumer credit reporting agency at the time of a request for inspection under subdivision (a), shall be available for inspection, including the namesand addresses of the sources of information. (d)(1) The consumercredit reporting agency shall also disclose the recipients of any consumercredit report on the consumer which the consumercredit reporting agency has furnished: ~(A) For employment purposes within the two-year period preceding the request. (B) For any other purpose within the 12—month period preceding the request. “"(2)Disclosure ofrecipientsofconsumercrédit reports for purposes of this subdivision shall include the name ofthe recipient or, if applicable, the fictitious business name under which the recipient does business disclosed in full. If requested by the consumer, the identification shail also include the address ofthe recipient. (e) The consumercredit reporting agencyshall also disclose a record ofall inquiries received by the agency in the 12~month period preceding the requestthat identified the consumerin connection with a credit transaction whichis notinitiated by the consumer. This record of inquiries shall include the name of each recipient making aninquiry. SEC.1.5. Section 1785.10 of the Civil Code is amendedto read: << CA CIVIL § 1785.10 >> 1785.10. (a) Every consumercredit reporting agency shall, upon request and properidentification of any consumer,allow the consumerto visually inspectall files maintained regarding that consumerat the time ofthe request. (b) Every consumerreporting agency, upon contact by a consumer by telephone, mail, or in person regarding information which may be contained in the agency files regarding that consumer, shall promptly advise the consumerofhis or herrights under Sections <<+1785.11.8,+>> 1785.19<<+,+>> and 1785.19. 5, and of the obligation of the agency to provide disclosure ofthe files in person, by mail, or by telephone pursuant to Section 1785.15, including the obligation of the agencyto provide a decoded written versionofthe file or a written copy ofthe file with an explanation ofany code, including any credit score used, and the key factors, as defined in Section 1785.15.1, ifthe consumer so requests that copy. The disclosure shall be providedin the mannerselected by the consumer, chosen from amongany reasonable meansavailable to the consumercredit reporting agency. The agency shall determinethe applicability of subdivision (1) of Section 1785.17 and, where applicable, the agency shall inform the consumerofthe rights under that section. (c) All information on a consumerin the files of a consumercredit reporting agency atthe time ofa request for inspection under subdivision (a), shall be available for inspection, including the names<<+,+>> addresses <<-* * *->><> the sources of information<<+, the telephone numbers identified for customerservice for the sources of informationt>>. (d)(1) The consumercredit reporting agencyshall also disclose the recipients of any consumercredit report on the consumer which the consumercredit reporting agency has furnished: (A) For employment purposes within the two-yearperiod preceding the request. (B) For any other purpose within the 12—month period preceding the request. (2) Disclosure of recipients of consumercredit reports for purposes ofthis subdivision shall include the name ofthe recipient or, if applicable, the fictitious business name under whichthe recipient does business disclosed in full. <<-* * *->><<+T+>>he identification shall also include the address <<-* * *->><<+tand, if provided by the recipient, the telephone numberidentified for customer service for+>> the recipient. (e) The consumercredit reporting agency shall also disclose a record ofall inquiries received by the agencyin the 12—month period preceding the request that identified the consumer in connection with a credit transaction which is not initiated by the consumer. This record of inquiries shall include the name<<-* * *->><<+, address and, if provided by the recipient, the telephone numberidentified for customer service for+>> each recipient making an inquiry. <<+(f) Any consumercredit reporting agency whenit is subject to the provisions of Section 1785.22 is exempted from the requirements of subdivisions(c), (d), and (e), only with regard to the provision ofthe address and telephone number.+>> <<+(g) Any consumercredit reporting agency, that provides a consumercredit report to another consumer credit reporting agency that procures the consumereredit report for the purpose of resale and is subject to Section 1785.22, is exempted from the requirements of subdivisions (d) and (e), only with regard to the provision of the address and telephone numberregarding each prospective user to which the consumer credit report was sold.+>> WrestlawNext : 2091S Thomson Reuters. No claimto original U.S. Government Works sO 3 CONSUMER PROTECTION—CREDITORS—PERSONAL..., 2001 Cal. Legis. Serv... SEC.2. Section 1785.11.8 is added to the Civil Code,to read: << CA CIVIL § 1785.11.8 >> 1785.11.8. A consumer mayelectthat his or her name shall be removed from anylist that a consumercredit reporting agency furnishes for credit card solicitations, by notifying the consumercredit reporting agency, by telephone orin writing, pursuant to the notification system maintained by the consumercredit reporting agency pursuantto subdivision (d) of Section 1785.11. The election shall be effective for a minimum oftwo years, unless otherwise specified by the consumer. SEC.3. Section 1785.16 of the CivilCode is amendedto read: << CA CIVIL § 1785.16 >> 1785.16. (a) If the completeness or accuracy ofany itemof information containedin his or herfile is disputed by a consumer, and the dispute is conveyeddirectly to the consumercredit reporting agency by the consumeror user on behalf ofthe consumer, the consumer credit reporting agency shall within a reasonable period of time and without charge, reinvestigate and record the current status of the disputed information before the end of the 30—business—dayperiod beginning on the date the agency receives notice of the dispute from the consumer or user, unless the consumercredit reporting agency has reasonable grounds to believe and determinesthat the dispute by the consumeris frivolous or irrelevant, including by reason ofa failure of the consumerto provide sufficient information, as requested by the consumercredit reporting agency, to investigate the dispute. Unless the consumercredit reporting agency determines that the dispute is frivolous orirrelevant, before the end ofthe five- business-day period beginning on the date the consumercredit reporting agency receives notice of dispute under this section, the agency shall notify any person whoprovided informationin disputeat the address and in the manner specified by the person. A consumercredit reporting agency mayrequire that disputes by consumersbe in writing. (b) Jn conductingthat reinvestigation the consumer credit reporting agency shal] review and consider all relevant information submitted by the consumerwith respectto the disputed item of information.If the consumercredit reporting agency determines that the disputeis frivolousorirrelevant, it shall notify the consumerby mailor, if authorized by the consumer for that purpose, by any other meansavailable to the consumercredit reporting agency, within five business daysafter that determination is made that it is terminating its reinvestigation of the item of information.In this notification, the consumer credit reporting agency shall state the specific reasons whyit has determined thatthe consumer's disputeis frivolousorirrelevant. If the disputed item of information is found to be inaccurate, missing, or can no longer be verified by the evidence submitted, the consumercredit reporting agency shall promptly add,correct, or delete that information from the consumer's file. (c) No information maybereinserted in a consumer's file after having been deleted pursuantto this section unless the person who furnished the informationcertifies that the information is accurate. If any information deleted from a consumer's file is reinserted in the file, the consumercredit reporting agencyshall promptly notify the consumerofthe reinsertion in writing or, if authorized by the consumerfor that purpose, by any other means available to the consumer credit reporting agency. Aspart of, orin addition to, this notice the consumercredit reporting agency shall, within five business days ofreinserting the information, provide the consumer in writing (1) a staternentthat the disputed information has been reinserted, (2) a notice that the agency will provide to the consumer, within 15 days following a request, the name, address, and telephone number of any furnisher _ of information contacted or which contacted the consumercredit reporting agency in connection with the reinsertion, (3) the toll-free telephone numberof the consumer credit reporting agency that the consumercan use to obtain this name, address, and telephone number,and (4) a notice that the consumer has the nghtto a reinvestigation of the information reinserted by the consumer credit reporting agency andto add a statementto his or her file disputing the accuracy or completeness of the information. (d) A consumercredit reporting agency shall provide written notice to the consumerofthe results of any reinvestigation under this subdivision, within five days of completion of the reinvestigation. The notice shall include (1) a statementthat the reinvestigation is completed, (2) a consumercredit report that is based on the consumer'sfile as that file is revised as a result of the reinvestigation, (3) a description or indication of any changes made in the consumer credit report as a result of those revisions to the consumer's file and a description of any changes made or sought by the consumerthat were not made and an explanation why they were not made, (4) a notice that, if requested by the consumer, a description of the procedure used to determine the accuracy and completenessofthe information shall be provided to the consumerby the consumer credit reporting » 20713 Thornson Reuters. No clairnto original U.S. Gavernrnent Works. 44 . . CONSUMER PROTECTION—CREDITORS—PERSONAL..., 2001 Cal. Legis. Serv.... agency, including the name, business address, and telephone number of any furnisherof information contacted in connection with that information,(5) 2 notice that the consumerhasthe right to add a statement to the consumer's file disputing the accuracy or completeness of the information, (6) a notice that the consumer has the right to request that the consumercredit reporting agency furnish notifications under subdivision (h), (7) a notice that the dispute wil! remain on file with the agency as longas the credit information is used, and (8) a statement about the details of the dispute will be furnished to any recipientas longas the credit information is retained in the agency's data base. A consumercredit reporting agencyshall provide the notice pursuant to this subdivision respecting the procedure used to determine the accuracy and completenessofinformation, not-later than 15 days after receiving a request from the consumer. . (e) The presence of information in the consumer'sfile that contradicts the contention ofthe consumershall not,in andofitself, constitute reasonable groundsfor believing the dispute ts frivolous or irrelevant. (f) If the consumercredit reporting agency determinesthat the dispute is frivolous orirrelevant, or if the reinvestigation does not resolvethe dispute, orif the information is reinserted into the consumer's file pursuant to subdivision (c), the consumer may file a brief statement setting forth the nature of the dispute. The consumercredit reporting agency may limit these statements to not more than 100 wordsifit provides the consumerwith assistance in writing a clear summary ofthe dispute. (g) Whenevera statementof dispute is filed, the consumer credit reporting agencyshall, in any subsequent consumercredit report containing the information in question, clearly note that the information is disputed by the consumerandshall include in the report either the consumer's statement or a clear and accurate summary thereof. (h) Following the deletion ofinformation from a consumer's file pursuant to this section, or following the filing ofa statement of dispute pursuant to subdivision (f), the consumercredil reporting agency, at the request of the consumer, shall furnish notification that the item of information has been deleted or that the item of information is disputed. In the case of disputed information, the notification shall include the statement or summary of the dispute filed pursuant to-subdivision (f). This - notification shall be furnished to any person designated by the consumer whohas, within two years prior to the deletion or the filing of the dispute, received a consumercredit report conceming the consumer for employment purposes, or whohas, within 12 monthsofthe deletion orthe filing of the dispute, received a consumercredit report concerning the consumerfor any other purpose, if these consumercredit reports contained the deleted or disputed information. The consumercredit reporting agency shall clearly and conspicuously disclose to the consumerhis or her rights to make a requestfor this notification. The disclosure shall be madeat or priorto the time the information is deleted pursuant to this section or the consumer's statement regarding the disputed informationis received pursuant to subdivision (f). (i) A consumercredit reporting agency shall maintain reasonable procedures to prevent the reappearance in a consumer's file and in consumercredit reports of information that has been deleted pursuantto this section and not reinserted pursuant to subdivision (c). (j) If the consumer's dispute is resolved by deletion of the disputed information within three business days, beginning with the day the consumercredit reporting agency receives notice of the dispute in accordance with subdivision (a), and provided that verification thereof is provided to the consumerin writing within five business days following the deletion, then the consumer credit reporting agency shall be exempt from requirements for further action under subdivisions(d), (f), and (g). (k) Ifa consumer submits to a credit reporting agency a copy ofa valid police report<> filed pursuant to Section 530.5 ofthe Penal Code, the consumercredit reporting agency shall promptly and permanently block reporting any information that the consumeralleges appears on hisor hercredit report as a result of a violation of Section 530.5 of the Penal Code so that the information cannot be reported. The consumercredit reporting agency shal] promptly notify the furnisher of the information that the information has been so blocked. Furnishers of information and consumercredit reporting agencies shall ensure that information is unblocked only upon a preponderanceofthe evidence establishing the facts required under paragraph (1), (2), or (3). The permanently blocked information shall be unblockedonlyif: (1) the information was blocked due to <<+a materia] misrepresentation offact by the consumer or+>> fraud,or (2) the consumeragrees that the blocked information, or portions of the blocked information, were blocked in error, or (3) the consumer knowingly obtained possession of goods, services, or moneys as a result of the biocked transaction or transactions or the consumer should have knownthat he or she obtained possession of goods, services, or moneysas a result of the blocked transaction or transactions. ]f blocked informationis unblocked pursuantto this subdivision, the consumershall be promptly notified in the same manneras consumersare notified of the reinsertion of information pursuant to subdivision (c). The prior presence of the blocked information in the consumercredit reporting agency's file on the consumer WestlawNeat €7043 Thanison Reuters. No clairn to original US. Government Works, 5 “5 . . A B L E a S e t s M i e CONSUMER PROTECTION—CREDITORS—PERSONAL..., 2001 Cal. Legis. Serv.... is not evidence ofwhether the consumer knew or should have knownthat he or she obtained possession of any goods,services,or moncys. For the purposesofthis subdivision, fraud may be demonstrated by circumstantial evidence. In unblocking information pursuantto this subdivision, furnishers and consumercredit reporting agencies shall be subjectto their respective requirements pursuantto this title regarding the completeness and accuracy of information. <<+(I) In unblocking information as described in subdivision (k), a consumer reporting agency shall comply with all requirements ofthis section and 15 U. S.C. Sec. 1681i relating to reinvestigating disputed information.In addition, a consumer reporting agency shall accept the consumer's version ofthe disputed information andcorrect or delete the disputed item when the consumer submits to the consumerreporting agency documentation obtainedfrom the sourceofthe itemin dispute or from public recordé confirming that the report was inaccurate or incomplete, unless the consumer reporting agency,iri the’exercise of good faith and reasonable judgment, has substantial reason based on specific, verifiable facts to doubt the authenticity of the documentation submitted and notifics the consumerin writing of that decision, explaining its reasons for unblocking the information and setting forth the specific, verifiable facts on which the decision was based.+>> <<+(m)}+>> Anyprovision in a contractthat prohibits the disclosure of a credit score by a person who makesorarranges loans or a consumercredit reporting agency is void. A lender shall not have liability under any contractual provision for disclosure of a credit score. SEC.4. Section 1785.16.! is added to the Civil Code,to read: << CA CIVIL § 1785.16.1 >> 1785.16.1. A consumercredit reporting agency shall delete from a consumercredit report inquiries for credit reports based upon credit requests that the consumercredit reporting agency verifies were initiated as the result of identity theft, as defined ~ in Section 1798.92. SEC.4.5. Section 1785.16.2 is added to the Civil Code,to read: << CA CIVIL § 1785.16.2>> 1785.16.2. (a) No creditor maysell a consumerdebtif the consumer's file with a consumercredit reporting agencyis blocked with respect to that debt pursuant to subdivision (k) of Section 1785.16, or if the consumer has provided the creditor with sufficient information in writing that the consumeris not obligated to pay the debt because heorshe is a victim of identity theft, as defined in subdivision (d) of Section 1798.92,for the creditor to have reasonable grounds to determine that consumer's statementofidentity theft is not frivolous. (b) Subdivision (a) does notapply to a creditor's sale of a debt to a subsidiary oraffiliate of the creditor. SEC. 5. Section 1785.20.3 is added to the Civil Code, to read: << CA CIVIL § 1785.20.3 >> 1785.20.3. (a) Any person whouses a consumercredit report in connection with a credit transaction, and whodiscovers that the address on the consumercredit report does not match the address of the consumerrequesting or being offered credit, shall take reasonable steps to verify the accuracy of the consumer's address, and shal] either communicate to consumerbytelephone, --orwrite the consumer,to confirm that the credittransaction és notthe result of identity theft, as defined in Section 1798.90. (b) Any person whouses a consumercredit report in connection with a credit transaction, and who receivesa clearly identifiable notification, consisting of more than a tradeline, from a consumer credit reporting agencythat information in the report has been blocked pursuantto Section 1785.16 as the result of anidentity theft, shall not lend money or extend credit without taking reasonable steps to verify the consumer's identity and to confirmthatthe credit transaction is not the result of identity theft. (c) Any consumer who suffers damagesasa result of a violation of this section by any person may bring an action in a court of appropriate jurisdiction against thal person to recover actual damages, court costs, attomey's fees, and punitive damages of not more than thirty thousand dollars ($30,060) for each violation, as the court deemsproper. (d) As used in this section, “identity theft” has the meaning given in Section 1798.90. SEC.6. Section 1786 of the Civil Code is amended to read: WestlavdNext 2013 Thorson Reuters. No ciaimto ariginal U.S. Government Works 6. _ og . CONSUMER PROTECTION—CREDITORS—PERSONAL..., 2001 Cal. Legis. Serv.... << CA CIVIL § 1786 >> 1786. The Legislature finds and declares as follows: (a) Investigative consumer reporting agencies have assumed a vital role in <<+collecting,+>> assembling<<+,+>> evaluating<<+, compiling, reporting, transmitting, transferring, or communicating+>> information on consumers for employment and insurance purposes, and for purposesrelatingto the hiring of dwelling units<<+, subpoenas and court orders, licensure, and otherlawful purposes+>>. So . (b) There is a needto insure thatinvestigative consumer reportingagencies exercise.their grave responsibilitieswith fairness, impartiality, and a respect for the consumer's right to privacy. <<+(c) The crime ofidentity theft in this new computer era has exploded to become the fastest growing white collar crime in America.+>> <<+(d) The unique nature of this crime meansit can often go undetected for years without the victim being awarehis identity has been misused.+>> <<+(e) Because notice of identity theft is critical before the victim can take steps to stop and prosecute this crime, consumers are best protected if they are automatically given copies of any investigative consumer reports made on them.+>> <<+(f)+>> It is the purposeofthis title to require that investigative consumerreporting agencies adopt reasonable procedures for meeting the needs of commerce for employment, insurance information, and informationrelating to the hiring of dwelling units ina manner whichis fair and equitable to the consumer, with regard to the confidentiality, accuracy, relevancy, and proper utilization of <<+the+>> information in accordance with the requirementsofthistitle. <<+(g)+>> The Legislature hereby intends to regulate investigative consumer reporting agencies pursuantto this title in a manner whichwill best protectthe interests of the people of the State of California. SEC.7. Section 1786.2 of the Civil Code is amended to read: << CA CIVIL § 1786.2 >> 1786.2. The following termsas usedin this title have the meaning expressedin this section: (a) The term “person” means any individual, partnership, corporation, limited liability company,trust, estate, cooperative, association, government or governmental subdivision or agency,or other entity. The term “person”as usedinthistitle shall not be construed to require duplicative reporting by any individual, corporation,trust, estate, cooperative, association, government, or governmental subdivision or agency,orotherentity involved in the sametransaction. (b) The term “consumer” meansa natural individual who has made application to a person for employmentpurposes, for insurance for personal, family, or household purposes,or the hiring of a dwelling unit, as defined in subdivision (c) of Section 1940. : (c) The term “investigative consumer report” means a consumer report in which information on a consumer's character, general reputation, personal characteristics, or mode ofliving is obtained through any means. The term does not include a consumer report or other compilation of information that is limited to specific factual information relating to a consumer's credit record or mannerofobtaining credit obtained directly froma creditor of the consumeror from a consumerreporting agency when that information was obtained directly from a potentialor existing creditor of the consumeror from the consumer. Notwithstanding the foregoing, for (ransaclions betweeninvestigative consumer reporting agencies and insuranceinstitutions, agents, or insurance-support organizations subject to Article 6.6 (commencing with Section 791) of Chapter 1 of Part 2 of Division 1 of the Insurance Code, the term “investigative consumer report” shall have the meaning setforth in subdivision (n) of Section 791.02 ofthe Insurance Code. (d) The term “investigative consumer reporting agency”means any person who,for monetary fees or dues, <<-* * *->>engages in wholeorin part in the practice of <<+collecting,+>> assembling<<+,+>> evaluating<<+, compiling,reporting, transmitting, transferring, or communicating+>> information concerning consumers for the purposes of furnishing investigative consumer reports to third parties, but does not include any governmental agency whoserecords are maintained primarily fortraffic safety, law enforcement, or licensing purposes,or any licensed insurance agent, insurance broker, or solicitor, insurer, or life insurance agent. VestleaNext & 2015 Tharnson Reuters. No claim to origina! US. Government Works. 7- . 7 ~ ao . . CONSUMER PROTECTION—CREDITORS—PERSONAL..., 2001 Cal. Legis. Serv.... (e) The term “file,” when usedin connection with information on any consumer, meansall of the information onthat consumer recorded andretained by an investigative consumerreporting agency regardless of how the informationis stored. (f) The term “employmentpurposes,” whenused in connection with an investigative consumerreport, meansa report used for the purpose ofevaluating a consumer for employment, promotion,reassignment, or retention as an employee. (g) The term “medical information” means information on person’s medicalhistory or condition obtained directly or indirectly from a licensed physician, medical practitioner, hospital, clinic, or other medical or medically related facility. SEC..8. Section 1786.10 of the Civil Code is amendedto read: — we << CA-CIVIL §.1786.10 >> 1786.10. (a) Every investigative consumer reporting agencyshall, upon request and proper identification of any consumer, allow the consumerto visually inspectall files maintained regarding the consumeratthe timeofthe request. (b) All items ofinformation shail be available for inspection, exceptthat the sources of information<<+,other than public records and records from data bases available for sale,+>> acquired solely for use in preparing an investigative consumerreport and actually used for no other purpose need not be disclosed. However, if an action is brought underthistitle, those sources shall be available to the consumerunder appropriate discovery procedures in the court in which the action is brought. Nothing in this title shall be interpreted to mean that investigative consumer reporting agencies are required to divulge to consumersthe sources ofinvestigative consumer reports except in appropriate discovery proceduresas outlined herein. (c) The investigative consumerreporting agency shal! also identify the recipients of any investigative consumerreport on the consumerthat the investigative consumerreporting agency has furnished: (1) For employmentor insurance purposes within the <<+three-year+>> period preceding the request. (2) For any otherpurpose within the <<+three-year+>> period preceding the request. (d) The identification of a recipient under subdivision (c) shall include the nameofthe recipientor, if applicable, the trade name(written in full) under which the recipient conducts business and, upon requestofthe consumer, the address andtelephone numberofthe recipient. (e) The investigative consumer reporting agency shall also disclose the dates, original payees, and amountsof any checks or charges upon which is based any adverse characterization of the consumer, includedin thefile at the time ofthe disclosure. SEC.9. Section 1786.11 of the Civil Code is amendedto read: << CA CIVIL § 1786.11 >> 1786.11. Every investigative consumerreporting agency that provides an investigative consumer report to a person other than the consumershall make a copyofthat report available, upon request and properidentification, to the consumerforat least <<- * * *>><<+three yearst+>> after the date that the report is provided to the other person. SEC. 10. Section 1786.16 of the Civil Code is amended to read: << CA CIVIL § 1786.16 >> 1786.16. (a) Any person described in subdivision (d) of Section 1786.12 shall not procure or cause to be prepared an investigative consumerreport unless the following applicable conditions are met: (1) If an investigative consumerreport is sought in connection with the underwriting of insurance,it shall be clearly and accurately disclosed in writing at the time the application form, medical form, binder, or similar documentis signed by the consumerthat an investigative consumerreport regarding the consumer's character, general reputation, personal characteristics, and modeofliving may be made.If no signed application form, medical form,binder, or similar documentis involved in the underwriting transaction, the disclosure shall be madc to the consumer in writing and mailed or otherwise delivered to the consumernotlater than three days after the report wasfirst requested. <<+Thedisclosure shall include the name and address of any investigative consumer reporting agency conducting an investigation, plus the nature and scope ofthe investigation requested, and a summary ofthe provisions of Section 1786.22.+>> (2) If, at any time, an investigative consumerreport is sought for employmentpurposes other than <<-* * *->><>, the person procuring or causing the report to be madeshall, notlater than thvee days after the date on which the report was first requested, notify the consumer in writing that an investigative WestlawNext © 2015 Thorson Reuters. No claim ta original U.S. Government Works. 8 . - . vg a . a . CONSUMERPROTECTION—CREDITORS—PERSONAL..., 2001 Cal. Legis. Serv.... consumer report regarding the consumer's character, general reputation, personal characteristics, and mode ofliving will be made. This notification shall include the name <<+and address+>> ofthe investigative consumer reporting agency conducting the investigation<<+, the nature and scope of the investigation requested,+>> and a summary ofthe provisions of Section 1786.22. (3) If an investigative consumerreport is sought in connection with the hiring of a dwelling unit, as defined in subdivision(c) of Section 1940, the person procuring or causing the request to be madeshall, notlater than three days after the date on which the report was first requested, notify the consumerin writing that an investigative consumerreport will be made regarding the consumer's character, general reputation, personal characteristics, and mode ofliving. The notification shall also include “the nameandaddressofthe investigative consumer reporting agency that will prepare the report <>. (4) The person procuring or causing the request to be made shall certify to the investigative consumer reporting agencythat the person has madethe applicable disclosures to the consumer required by this subdivision and that the person will comply with subdivision (b). <<+(5) The person procuring the report or causingit to be prepared agrees to provide a copyofthe report to the subject of the investigation, as provided in subdivision (b).+>> (b) Any person described in subdivision (d) of Section 1786.12 <<-* * *->><<+who requests an investigative consumer report regarding that consumershal] provide the consumer with a copyofthe report and information on whoissued the report and how to contact them, either at the time of the meeting or interview between the consumer and the person who requests an investigative consumerreport regarding that consumer or within seven days of the date such person receives the report, whicheveris earlier+>>. (c) The provisions of subdivision (a) shall not apply to an investigative consumer report procured or caused to be prepared by an employerif the purpose ofthe employeris to determine whetherto retain an employee whenthereis a goodfaith belief that the employee.is engagedin any criminalactivity likely to result in a loss to the employer. (d) Those persons describedin subdivision (d) of Section 1786.12 ofthis title shall constitute the sole and exclusive class of persons who may cause an investigative consumerreport to be prepared. SEC.11. Section 1786.18 of the Civil Code is amendedto read: << CA CIVIL § 1786.18 >> 1786.18. (a) Except as authorized under subdivision (b), no investigative consumer reporting agency shall make or furnish any investigative consumerreport containing any ofthe following items of information: (1) Bankruptcicsthat, from the date of adjudication, antedate the report by more than 10 years. (2) Suits that, from the date offiling, and satisfied judgments that, from the date of entry, antedate the report by more than seven years. (3) Unsatisfied judgmentsthat, from the date of entry, antedate the report by morethan seven years. (4) Unlawful detainer actions where the defendant was the prevailing party or where the action is resolved by settlement agreement. (5) Paid tax liens that, from the date of payment, antedate the report by more than seven years. (6) Accounts placed for collection or chargedto profit and loss that antedate the report by more than seven years. (7) Records of arrest, indictment, information, misdemcanor complaint, or conviction of a crime that, from the date of disposition, release, or parole, antedate the report by more than seven years. These items of information shall no longer be reported if at any time it is learned that, in the case of a conviction, a full pardon has been granted or, in the case of an arrest, indictment, information, or misdemeanor complaint, a conviction did not result; except that recordsofarrest, indictment, information, or misdemeanor complaints may be reported pending pronouncementofjudgmentonthe particular subject matter of those records. (8) Any other adverse information that antedates the report by more than seven ycars. (b) The provisions of subdivision (a) are not applicable in the case of any investigative consumerreport to be used in the <<- * * *_>>underwriting oflife insurance involving, or that may reasonably be expected to involve, an amount of <<+twot>> hundred fifty thousand dollars ($<<+250,000+>>) or more. <<_* * *.>> c aThamson Reuters. No cain to orginal U.S. Government Works. . a 9 7 oe %, CONSUMER PROTECTION—CREDITORS—PERSONAL..., 2001 Cal. Legis. Serv.... (c) Except as otherwise provided in Section 1786.28, an investigative consumer reporting agency shall not furnish an investigative consumerreport that includes informationthatis a matter of public record and that relates to an arrest, indictment, conviction,civil judicialaction,tax lien, or outstanding judgment, unless the agency has verified the accuracyofthe information during the 30-day period ending on the date on which thereport is furnished. (d) An investigative consumerreporting agency shall not prepare or furnish an investigative consumer report on a consumer that contains information that is adverse to the interest of the consumerandthat is obtained through a personal interview with aneighbor, friend,-or associate of the consumer or with another person with whom the consumer is acquainted or who has knowledge ofthe item ofinformation,unless cither (1) the investigative consumer reporting agency has followed reasonable “procedures to obtain confirmation ofthe information, from an additional source that has independent anddirect knowledge of the information,or (2) the person interviewedis the best possible source ofthe information. SEC. 12. Section 1786.20ofthe Civil Code is amendedtoread: << CA CIVIL § 1786.20 >> 1786.20. (a) Every investigative consumerreporting agency shall maintain reasonable procedures designed to avoid violations of Section 1786.18 and to limit furnishing of investigative consumer reports for the purposes listed under Scction 1786.12. These procedures shall require that prospective users of the information identify themselves, certify the purposes for which the information is sought and that the information will be used for no other purposes, and make the certifications described in paragraph (4) of subdivision (a) of Section 1786.16. From the effective date ofthistitle, the investigative consumer reporting agency shall keep a record ofthe purposes for which information is sought,as stated by the user. Every investigative consumer reporting agency shall make a reasonable effort to verify the identity of a new prospective user and the usescertified by the prospective userprior to furnishing theuser anyinvestigative consumer reports. Noinvestigative consumer reporting agericy may furnish any investigative consumer reports to any person unless it has <<-* * *->><> that the investigative consumerreports will be used by that person <> for purposes listed in Section 1786.12. (b) Wheneveran investigative consumerreporting agencyprepares an investigative consumerreport, it shall follow reasonable procedures to assure maximum possible accuracy ofthe information concerning the individual about whom the report relates. <<+Aninvestigative consumerreporting agency shall retain the investigative consumerreport for a period of three years.+>> (c) An investigative consumer reporting agency shall not make an inquiry for the purpose of preparing an investigative consumerreport on a consumer for employmentpurposesif the making of the inquiry by an employer or prospective employer of the consumer would violate any applicable federal or state equal employmentopportunity law or regulation. <<+(d) Any investigative consumerreporting agency that violates this section shall be liable to the consumeraffected in an amount notless than twenty-five thousand dollars ($25,000).+>> SEC. 13. Section 1786.24 ofthe Civil Code is amendedtoread: << CA CIVIL § 1786.24 >> 1786.24. (a) If the completeness or accuracy of any item of information containedin hisorherfile is disputed by a consumer, and the dispute is conveyeddirectly to the investigative consumer reporting agencyby the consumer, the investigative consumer reporting agency shall, withoutcharge, reinvestigate and recordthe currentstatus of the disputed informationor delete the item_ fromthe file in accordance with subdivision (c), before the end of the 30-day period beginning on the date on whichthe agency receives the notice of the dispute from the consumer. (b) The agencyshall notify any person who provided informationin dispute at the address and in the mannerspecified by that person. Thenotice shall includeall relevant information regarding the disputethat the investigative consumerreporting agency has received from the consumer. The agency shall also promptly provide to the person who provided the information in dispute all relevant information regarding the dispute thatis received by the agency from the consumer during the reinvestigation. (c) In conducting a reinvestigation, the investigative consumer reporting agency shall review and consider all relevant information submitted by the consumer with respectto the disputed item of information. (d) Notwithstanding subdivision (a), an investigative consumer reporting agency may terminate a reinvestigation of information disputed by a consumerif the investigative consumer reporting agency rcasonably determinesthat the dispute is frivolous or irrelevant, including by reason ofa failure by a consumerto provide sufficient information to investigate the WestlawNext € 2013 Thomson Reuiers. No clairn to original US. Government Works. 10 - : : 10 , ; . “Shall notify the consumerthattheinformation has been deleted or modified. <<+The consumer reporting agency shall also~ CONSUMER PROTECTION—CREDITORS—PERSONAL..., 2001 Cal. Legis. Serv.... disputed information. Upon makinga determinationthata disputeis frivolousorirrelevant, the investigative consumerreporting agency shall notify the consumer, by mail or, ifauthorized by the consumerfor that purpose, by any other means available to the agency.Inthis notification, the investigative consumerreporting agencyshall state the specific reasons whyit has detennined that the consumer's disputeis frivolous orirrelevant and provide a description of any information required to investigate the disputed information, that may consist of a standardized form describing the general nature of the required information. (e) Ifa reinvestigation is made and,after reinvestigation,the disputed itemofinformation is found to be inaccurate, incomplete, or cannotbe verified by the evidence submitted, the investigative consumer reporting agency shall promptly delete that information from the consumer's file or modify the information, as appropriate, based onthe results of the reinvestigation, and notify any and all sources from which the disputed information was obtained and inform them in writing of the reasons and results of the reinvestigation, and send a copy ofthis notification to the consumer.+>> (f) No information maybe reinserted in a consumer'sfile after having been deleted pursuant to this section unless the person who furnished the information verifies that the information is complete and accurate. If any information deleted from a consumer'sfile is reinserted in the file, the investigative consumerreporting agency shall promptly notify the consumer of the reinsertion in writing or, if authorized by the consumerfor that purpose, by any other meansavailable to the agency. As part of, or in addition to, this notice, the investigative consumerreporting agencyshall provide to the consumer in writing (1) a statementthat the disputed information has beenreinserted, (2) the name,address, and telephone numberof any furnisher of information contactedor that contacted the investigative consumer reporting agency in connection with the reinsertion, and the telephone numberofthe furnisher, if reasonably available, and (3) a notice that the consumer hasthe right to a reinvestigation of the information reinserted by the investigative consumer reporting agency and to add a statementto his orherfile disputing the accuracy or completenessofthe information. oe ~ (g) Aninvestigative consumerreporting agencyshall provide notice to the consumerofthe results ofany reinvestigation under this section by mail or, if authorized by the consumer for that purpose, by other meansavailable to the agency. The notice shall include (1) a statement that the reinvestigation is completed, (2) an investigative consumer report that is based on the consumer'sfile as thatfile is revised as a result of the reinvestigation, (3) a description or indication of any changes madein the investigative consumerreportas a resultofthose revisionsto the consumer's file, (4) a notice that, if requested by the consumer, a description of the procedure used to determine the accuracy and completeness ofthe information shall be provided to the consumerbythe investigative consumerreporting agency, including the name, business address, and telephone numberof any furnisher of information contacted in connection with that information, (5) a notice that the consumerhasthe right to add a statementto the consumer's file disputing the accuracy or completeness of the information, and (6) a notice that the consumer has the right to requestthat the investigative consumerreporting agency furnish notifications under subdivision(k). (h) The presenceof information in the consumer'sfile that contradicts the contention of the consumershall not, in andofitself, constitute reasonable groundsfor believing the dispute is frivolousor irrelevant. (i) If the investigative consumerreporting agency determinesthatthe dispute is frivolousorirrelevant,orif the reinvestigation does not resolve the dispute,orif the informationis reinserted into the consumer's file pursuant to subdivision (1), the consumer mayfile a brief statementsetting forth the nature ofthe dispute. The investigative consumer reporting agency may limit these statements to not more than <<+500+>> wordsif it provides the consumer with assistance in writing a clear summary ofthe . dispute. - - . . . (j) Whenevera statement ofdispute is filed, the investigative consumerreporting agencyshall, in any subsequent investigative consumerreport containing the information in question, clearly note that the information is disputed by the consumer and shal] include in the report either the consumer's statement or a clear and accurate summary thereof. (k) Followingthe deletion of information from a consumer's file pursuantto this section, or following the filing of a dispute pursuantto subdivision(i), the investigative consumerreporting agencyshall,at the request of the consumer,furnish notification that the item of information has been deleted orthat the item of information is disputed. In the case of disputed information, the notification shall include the statement or summary ofthe dispute filed pursuant to subdivision (i). This notification shall be furnished to any person <<-* * *->>whohas, within two ycars prior to the deletion orthe filing of the dispute, received an investigative consumer report concerning the consumer for employment purposes, or who has, within one year ofthe deletion or the filing of the dispute, received an investigative consumer report conccrning the consumer for any other purpose,if these investigative consumer reports contained the deleted or disputed information<<+,unlcss the consumerspecifically requests in Next © 2013 Thorson Reuters No claim io argina’ U.S, Government Works. 41 i1 , CONSUMER PROTECTION—CREDITORS—PERSONAL..., 2001 Cal. Legis. Serv.... writing, that this notification not be given to all personsor to any specified personst>>. The investigative consumerreporting agencyshall clearly and conspicuously disclose to the consumerhis or her rights to make a request <<+thatt>>this notification <<+not be madet+>>. (I) An investigative consumer reporting agency shall maintain reasonable procedures designed to prevent the reappearance in a consumer's file and in investigative consumerreports information that has been deleted pursuant to this section and not reinserted pursuantto subdivision (f). _ .(m)If the consumer's dispute is resolved by deletionof the disputed information within three business days, beginning with the day the investigative consumerreporting agency receives notice of the dispute in accordance with subdivision (a), the investigative consumer reporting agency shall be exempt from requirements for further action under subdivisions(g),(i), and: - (j), if the agency:(1) provides promptnotice of the deletion to the consumerbytelephone, (2) provides written confirmation of the deletion and a copyofan investigative consumerreport ofthe consumerthatis based on the consumer's file after the deletion, and(3) includes,in the telephonenotice or in a written notice that accompanicsthe confirmation and report, a statementof the consumer's right to request under subdivision (k) that the agency <<+nott+>> furnish notifications under that subdivision. (n) Any investigative consumer reporting agency that compiles and maintainsfiles on consumers on a nationwide basis, as defined in the federal Fair Credit Reporting Act, as amended (15 U.S.C. Sec. 1681 et seq.), shall implement an automated system through which furnishers of information to that agency may report theresults of a reinvestigation that finds incomplete or inaccurate information in a consumer's file to other investigative consumerreporting agencies. (0) All actions to be taken by an investigative consumerreporting agency underthis section are governed by the applicable time periods specified in Section 611 of the federal Fair Credit Reporting Act, as amended (15 U.S.C. Sec. 16811). SEC. 14. Section 1786.26 of the Civil Code is amendedto read: << CA CIVIL§ 1786.26 >> 1786.26. <<-* * *>><<+(a)+>> Except as otherwise provided in subdivision <<+(c)+>>, an investigative consumerreporting agency may charge a consumera fee not exceeding eight dollars ($8) for making disclosures to the consumerpursuant to Sections 1786.10, 1786.11, and 1786.22. Any chargesshall be indicated to the consumer prior to disclosure. <<+(b)+>> Aninvestigative consumerreporting agency shall not impose any charge for providing notice to a consumer required under Section 1786.24<<+, furnishing an investigative consumerreport pursuantto Section 1786.24,+>> or notifying a person pursuant to subdivision (k) of Section 1786.24 of the deletion of information that is found to be inaccurate or that cannotbe verified. <<+(c)+>> Uponthe request of the consumer, an investigative consumer reporting agency shall makeall disclosures pursuant to Section 1786.10 and 1786.22 once during any 12—month period without charge to that consumerif the consumercertifies in writing that he or she (1) is unemploycd and intends to apply for employmentin the 60-day period beginning on the date the certification is made, (2) is a recipient of public welfare assistance, or (3) has reasonto believe that the file on the consumerat the investigative consumer reporting agency contains inaccurate information dueto fraud. <> An investigative consumer reporting agency shall not impose any charge on a consumer for providing any notification or making anydisclosure required bythis title, except as authorized bythis section. SEC. 15. Section 1786.28 of the Civil Codec is amendedto read: << CA CIVIL § 1786.28 >> 1786.28. (a) Each investigative consumer reporting agency <<-* * *->><> compiles<<+,+>> reports<<+,transmits, transfers, or communicates+>> items of information concerning consumers which are matters of public record shall specify in any report containing public record information the source from which <<+this +>> information was obtained, including the particular court, if <<-* * *->><>, and the date that <<+thist>> information wasinitially reported or publicized. (b) A consumer reporting agency which furnishes a consumer report for employmentpurposes and which for that purpose compiles<<-* * *->><<+,collects, assembles, evaluates,+>> reports<<+, transmits, transfers, or communicatest+>> items of information on consumers which are matters of public record andare likely to have an adverse effect upon a consumer'sability to obtain employment shall in addition maintain strict procedures designed to insure that whenever public record information VeosilaaNext € 204139 Thamson Reuters. No clairto original U.S. Gavernment Works 12 : : 12 CONSUMER PROTECTION—CREDITORS—PERSONAL..., 2001 Cal. Legis. Serv.... which is likely to have an adverse effect on a consumer's ability to obtain employmentis reported it is complete and up to date. For purposes of this paragraph, items of public record relating to arrests, indictments, convictions,suits, tax liens, and outstanding judgments shall be considered up to date if the current public record status of the item at the time of the report is reported. SEC. 16. Section 1786.29 is added to the Civil Code,to read: << CA CIVIL §1786.29 >> __ 1786.29. Aninvestigativeconsumer-reporting agencyshall providethe following notices: . (a) As a cover sheet to any report, a notice in at least 16 point type that sets forth the following disclosures or warnings: (1) The report does not guaranteethe accuracyortruthfulnessof the information as to the subject of the investigation, but only that it is accurately copied from public records. Evidence ofidentity theft may or may not beidentified from this report. (2) Therecipientof this report shall give a copy ofthis report to the subject of the report. (3) Failure to provide a copyof the report as required by law may exposeyouto liability as specified in Section 1786.50. (b) An investigative consumerreporting agency shall provide a consumerseeking to obtain a copy of a report or making a requestto review file, a written notice in simple plain English and Spanish setting forth the terms and conditionsofhis or her right to receive all disclosures as provided in Section 1786.26. << Repealed: CA CIVIL pr. 1786.40 (a. hd.) >> << CA CIVIL § 1786.40 >> SEC.17. Article 3 (commencing with Section 1786.40)ofTitle 1.6A of Part 4 of Division 3 of the Civil Codeis repealed. SEC. 18. Section 1786.50 of the Civil Code is amendedto read: << CA CIVIL § 1786.50 >> 1786.50. (a) <<+In addition to the penalty specified in Section 1786.20, at>>ny investigative consumerreporting agency or user of information thatfails to comply with any requirementunderthistitle with respect to an investigative consumerreport is liable to the consumer whois the subject of the report in an amount equal to the sum ofall the following: (1) Anyactual damages sustained by the consumeras a result of the failure or, except in the case of class actions, <<+tent+>> thousand <<-* * *->> dollars ($<<+10,000+>>), whichever sumis greater<<-* * *¥->><<+,+>> (2) In the case ofany successful action to enforce any liability under this chapter, the costs of the action together with reasonable attorney's fees as determined by the court. (b) If the court determines that the violation was grossly negligent or willful, the court may, in addition, assess, and the consumer may recover, punitive damages. (c) Notwithstanding subdivision (a), an investigative consumer reporting agency or user of information that fails to comply with any requirement underthistitle with respect to an investigative consumerreport shall not be liable to a consumer who is the subject of the report where the failure to comply results in a more favorable investigative consumerreport thanif there had not been a failure to comply. SEC. 19. Section 1786.52 of the Civil Code is amended to read: << CA CIVIL § 1786.52 >> 1786.52. Nothingin this chaptershall in any wayaffect the right of any consumerto maintain an action against an investigative consumerreporting agency, a user of an investigative consumerreport, or an informant for invasion of privacy or defamation. An action to enforce any liability created underthis title may be brought in any appropriate court of competent jurisdiction within two years from the date <<-* * *->><<+of discovery+>>. (a) Any investigative consumerreporting agency oruserof information against whoman action brought pursuant to Section 1681n or 16810 of Title 15 of the United States Code is pending shall not be subject to suit for the same act or omission under Section 1786.50. t Work a A O w: 213 Thomson Reuters. No cians to origins! US. Governman - 3 - CONSUMER PROTECTION—CREDITORS--PERSONAL..., 2001 Cal. Legis. Serv.... (b) The entry ofa final judgmentagainstthe investigative consumer reporting agency or user ofinformation in an action brought pursuantto the provisions of Section 168 In or 16810 ofTitle 15 of the United States Codeshall be a bar to the maintenance of any action based on the same act or omission which might be broughtunderthis title. SEC.20. Section 1786.53 is added to the Civil Code, to read: << CA CIVIL § 1786.53 >> * 1786.53. Any person whocollects, assembles, evaluates, compiles, reports, transmits, transfers, or communicates information -on a consumer's character, general reputation, personal characteristics, or mode of living for the purposes specified in subdivision (a) of Section 1786, in lieu of using the services of an investigative consumer reporting agency, shall provide that information to the consumerat the time of the meeting or interview with the consumer, or within seven daysof the date the person obtains the information regarding the consumer, whicheveris earlier. << CA CIVILpr. 1798.92 (t. hd.) >> SEC.21. Title 1.81.3 (commencing with Section 1798.92) is added to Part 4 of Division 3 of the Civil Code,to read: TITLE 1.81.3. IDENTITY THEFT << CA CIVIL § 1798.92 >> 1798.92. For the purposesofthis title: (a) “Claimant” means a person who has or purports to have a claim for money oran interest in property in connection with a transaction procured through identity theft. - (b) “Identity theft” means the unauthorized use of another person's personal identifying information to obtain credit, goods, services, money, or property. (c) “Personal identifying information” means a person's name, address, telephone number, driver's license number, social security number, place of employment, employee identification number, mother's maiden name, demand deposit account number, savings account number, or credit card number. (d) “Victim ofidentity theft” means a person whohadhisor her personal identifying information used without authorization by another to obtain credit, goods, services, money, or property, and did notuse or possess the credit, goods, services, money, or property obtained by the identity theft, and filed a police report in this regard pursuant to Section 530.5 of the Penal Code. << CA CIVIL § 1798.93 >> 1798.93. (a) A person maybring an action against a claimant to establish that the person is a victim of identity theft in connection with the claimant's claim against that person.If the claimant has brought an action to recover on ils claim against the person, the person mayfile a cross-complaintto establish that the personis a victim of identity theft in connection with the claimant's claim. (b) A person shall establish that he or she is a victim ofidentity theft by a preponderance ofthe evidence. (c) A person whoprovesthat he or she is a victim ofidentity theft, as defined in Section 530.5 of the Penal Code, as to a particular claim,shalt be entitled to a judgment providing all ofthe following, as appropriate: (1) A declaration that he or she is not obligated to the claimanton that claim. (2) A declaration that anysecurity interest or otherinterest the claimant had purportedly obtained in the victim's property in connection withthat claim is void and uncnforccablc. (3) An injunction restraining the claimant from collecting or attempting to collect from the victim on that claim,from enforcing or attempting to enforce any sccurity intcrest or other interest in the victim's property in connection with thatclaim, or from enforcing or executing on any judgmentagainst the victim on that claim. (4) If the victim has filed a cross-complaint against the claimant, the dismissal of any cause of action in the complaintfiled by the claimantbased on a claim which arose as a result of the identity theft. (5) Actual damages, attorney's fees, and costs, and any equitable relief that the court deems appropriate. In order to recover actual damagesor attomey's fees in an action or cross-complaintfiled by a personalleging that he or she is a victimof identity = a sllayNext € 204% Thaimsan Reuters. No clairto orginal US. Government Warks 14 : : CONSUMER PROTECTION—CREDITORS—PERSONAL..., 2001 Cal. Legis. Serv.... theft, the person shall show that he or she provided written notice to the claimantthat a situation of identity theft might exist, including, upon written request of the claimant, a valid copy of the police report or the Department of Motor Vehicles investigative report promptly filed pursuant to Section 530.5 of the Penal Codeatleast 30 days priorto his or herfiling of the action, or within his or her cross-complaint pursuant to this section. (6) A civil penalty, in addition to any other damages, ofup to thirty thousand dollars ($30,000) :f the victim establishes by clear and convincing evidenceallof the following: (A)-Thatat least 30 days priorto filing an action or-within the cross-complaint pursuantto this section, he or-she provided written notice to the claimantat the address designated by the claimant for complaints related to credit reporting issues that a ~~ sitiation of identity theft might exist and explaining the basisfor thatbelief. : ° (B) That the claimantfailed to diligently investigate the victim's notification of a possible identity theft. (C) That the claimant continued to pursue its claimagainst the victimafter the claimant was presented with facts that were later held to entitle the victim to a judgment pursuantto this section. << CA CIVIL § 1798.94 >> 1798.94. An action or cross-complaint brought underthistitle that joins other claimants as defendants in the same action or cross-complaintshall be deemed to comply with Section 379 of the Code of Civil Procedure. << CA CIVIL § 1798.95 >> 1798.95. A court shall have continuing jurisdiction over an action or cross-complaintfiled pursuantto this title in order to provide for the joinder of related causes of action based on the theft of the same person's identity and the joinderof further defendants based uponthetheft of the same person's identity, regardless of whethera final judgmenthas been entered asto any defendant. The court’s continuing jurisdiction shall terminate 10 years after filing of the original action unless the court, prior to that date, finds good cause to extend jurisdiction over the matter. << CA CIVIL § 1798.96 >> 1798.96. Any action broughtpursuantto this title or any joinder of a defendant pursuant to Section 1798.82 may be brought within four years of the date the person who alleges that he or she is a victim of identity theft knewor, in the cxercise of reasonable diligence, should have knownofthe existence of facts which would giveriseto the bringing of the action or joinder of the defendant. << CA CIVIL § 1798.97 >> 1798.97. (a) This title does not apply to a transaction subject to Section 1747.10. (b) Nothingis this title shall be construed to affect a claimant's rights and remedies against a person who perpetrates identity theft or against any person who used or possessedthecredit, goods, services, or property obtained by identity theft. (c) This title is cumulative to the rights and remedies provided under other laws. SEC. 22. Section 1.5 of this bill incorporates amendmentsto Section 1785. 10 of the Civil Code proposed by both this bill and AB 488. It shall only becomeoperative if (1) both bills are enacted and becomeeffective on or before January |, 2002, (2) each bill amends Section 1785.10 of the Civil Code, and(3) this bill is enacted after AB 488, in whichcase Section | of this bill shal] not become operative. CA LEGIS354 (2001) End of Document © 2013 Thomson Reuters. Noclaimto origmal U.S. Goverument Works. ming t VAL oy Le ak rent Works. ho waNext2072 Thomson Reulers No claim to original US. Go ~ - . . 15 (CF - California Central District - https://ecf.cacd.uscourts.gov/cgi-bin/DktRpt.p1?623690322602064-L. 1_0-] (Ex),APPEAL,CLOSED,DISCOVERY,MANADR UNITED STATES DISTRICT COURTfor the CENTRAL DISTRICT OF CALIFORNIA (Western Division - Los Angeles) CIVIL DOCKET FOR CASE#: 2:12-cv-06284-BRO-E Jane Roe -v- Lexisnexix Rik Solutions Incet al Assignedto: JudgeBeverly Reid O'Connell Referred to: Magistrate Judge Charles F. Eick Casein other court: 9th CCA, 13-55658 Superior Court of CA for the County of Los Angeles, BC485507 Cause: 28:1441 Notice of Removal - Fair Credit Reporting Act Plaintiff Jane Roe represented by Date Filed: 07/20/2012 Date Terminated: 12/17/2013 Jury Demand: Plaintiff Nature of Suit: 480 ConsumerCredit Jurisdiction: Federal Question Craig M Davis Law Offices of Craig Davis 524 Union Street, Suite 358 San Francisco, CA 94133-3314 415.857.5820 Fax: 415.795.4595 Email: cdavis@craigdavislaw.com LEAD ATTORNEY ATTORNEY TO BE NOTICED Devin H Fok Law Offices of Devin H Fok P O Box 7165 Alhambra, CA 98102-7165 310-430-9933 Fax: 323-563-3445 Email: devin@devinfoklaw.com ATTORNEY TO BENOTICED Joshua Eunsuk Kim A New Way of Life Reentry Project PO Box 875288 Los Angeles, CA 90087 323-563-3575 Fax: 323-563-3445 Email: joshua@anewwayoflife.org ATTORNEY TO BE NOTICED 10/13/2014 3:38 PM °CF - California Central District _. https://eef.cacd_uscourts.gov/cgi-bin/DktRpt.p!?623690322602064-L_1_0-1 _ - Defendant LexisNexis Risk Solutions Inc represented by Frederick T Smith aforeign corporation doing business in Seyfarth Shaw LLP California 1075 Peachtree Street NE Suite 2500 doing business as Atlanta, GA 30309-3962 Choicepoint 404-885-1500 Fax: 404-892-7056 Email: fsmith@seyfarth.com PRO HAC VICE - ATTORNEY TO BENOTICED ~ John R Giovannone Seyfarth Shaw LLP 333 South Hope Street Suite 3900 Los Angeles, CA 90071-1406 213-270-9600 Fax: 213-270-9601 Email: jgiovannone@seyfarth.com ATTORNEY TO BE NOTICED Pamela Q Devata Seyfarth Shaw LLP 131 South Dearborn Street Suite 2400 Chicago, IL 60603 312-460-5882 Fax: 312-460-7882 Email: pdevata@seyfarth.com PRO HAC VICE ATTORNEY TO BE NOTICED Defendant Does 1-10 inclusive Date Filed # Docket Text 07/20/2012 1 NOTICE OF REMOVALfrom Superior Court of CA for the County of Los Angeles, case number BC485507 with CONFORMEDFILEDcopy of summonsand complaint. Case assigned to Judge Gary A. Feess, Discovery to Magistrate Judge Charles F. Eick. (Filing fee $ 350 PAID.), filed by Defendant LexisNexis Risk Solutions Inc. (et) (ds). (Entered: 07/24/2012) 07/20/2012 IN D CERTIFICATION of Interested Parties filed by Defendant LexisNexis Risk Solutions Inc, identifying Corporate Parent LexisNexis Risk Assets Inc, OtherAffiliate LexisNexis Screening Solutions Inc. for LexisNexis Risk Solutions Inc. (et) (ds). (Entered: 07/24/2012) it eW A N A A I S I ti D E G oh o 10/13/2014 3:38 PM 07/20/2012 - California Central District CORPORATE DISCLOSURE STATEMENTfiled by Defendant LexisNexis Risk SolutionsInc. (et) (ds). (Entered: 07/24/2012) 07/20/2012 | NOTICE TO PARTIES OF COURT-DIRECTED ADR PROGRAMfiled.(et) (Entered: 07/24/2012) 07/24/2012 ju n NOTICE of Compliance filed by Defendant LexisNexis Risk Solutions Inc. (Giovannone, John) (Entered: 07/24/2012) 07/27/2012 In N ANSWER10 Plaintiff's Complaint filed by Defendant LexisNexis Risk Solutions - Inc.(Giovannone, John) (Entered: 07/27/2012) | 07/30/2012 ORDER REGARDING RULE26(f) SCHEDULING CONFERENCE AND JOINT REPORTby Judge Gary A. Feess. Scheduling Conference set for 12/3/2012 at 1:30 PM before Judge Gary A. Feess. (Attachments: # 1 Appendix) (rfi) (Entered: 07/30/2012) 11/20/2012 NOTICE OF MOTION AND MOTIONfor Judgment on the Pleadingsas to PLAINTIFF'S THIRD, FOURT, FIFTH, SIXTH & SEVENTH CLAIMS PURSUANT TO F.R.C.P. 12(C) AND/OR 12(b)(6) filed by DEFENDANT LexisNexis Risk Solutions Inc. Motion set for hearing on 12/24/2012 at 09:30 AM before Judge Gary A. Feess. (Attachments: # 1 Memorandum Points & Authorities, #2 Declaration John R. Giovannone, # 3 Notice of Lodging Proposed Order, # 4 Proposed Order)(Giovannone, | John) (Entered: 11/20/2012) 11/21/2012 APPLICATIONfor attorney Pamela Q. Devata to Appear Pro Hac Vice (PHV FEE NOTPAID.) filed by Defendants LexisNexis Risk Solutions Inc. (Attachments: # 1 Order On Application ofNon-Resident Attorney to Appear In A Specific Case)(Giovannone, John) (Entered: 11/21/2012) 11/26/2012 ORDERby Judge Gary A. Feess: granting 9 Application to Appear Pro Hac Vice by Attorney Pamela Q. Devata on behalf of Defendants, designating John R. Giovannone as local counsel. (It) (Entered: 11/28/2012) 11/27/2012 10 SCHEDULING NOTICEby Judge Gary A. Feess re: MOTIONfor Judgmenton the Pleadings 8 previously scheduled for 12/24/2012 9:30 AM has been rescheduled. Motionset for hearing on 1/7/2013 at 09:30 AM before Judge Gary A. Feess. THERE IS NO PDF DOCUMENTASSOCIATED WITH THIS ENTRY.(dbo) TEXT ONLY ENTRY(Entered: 11/27/2012) 11/27/2012 Joint STIPULATIONto Continue Scheduling Conference from December 3, 2012 to ~ January 28, 2013 filed by Defendant LexisNexis Risk Solutions Inc. (Attachments: # 1 Proposed Order)(Giovannone, John) (Entered: 11/27/2012) 11/28/2012 APPLICATIONforattorney Frederick T. Smith to Appear Pro Hac Vice (PHV FEE NOTPAID.) filed by Defendant LexisNexis Risk Solutions Inc. (Attachments: # 1 Proposed Order)(Giovannone, John) (Entered: | 1/28/2012) 11/29/2012 IT IS HEREBY ORDEREDthat the Court's Scheduling Conference in this action shallbe continued to Monday, January 28, 2013 at 1:30 p.m. or at a time thereafter deemedappropriate by the Court by Judge Gary A. Feess (bp) (Entered: 11/29/2012) 10/13/2014 3:38 PM https://ecf.cacd.uscourts.gov/cgi-bin/DktRpt.p]?623690322602064-L_1_0-1 CF - California Central District Lo a . _ _https://ecf.cacd_uscourts.gov/cgi-bin/DktRpt.pl1?623690322602064-L_1_0-1 11/30/2012 15 ORDERby Judge Gary A. Feess: granting 13 Application to Appear Pro Hac Vice by Attorney Frederick T. Smith on behalf of Defendant, designating John R. Giovannone as local counsel. (It) (Entered: 11/30/2012) 12/11/2012 16 MEMORANDUMin Opposition to MOTION for Judgment on the Pleadingsas to PLAINTIFF'S THIRD, FOURT, FIFTH, SIXTH & SEVENTH CLAIMS PURSUANT TO F.R.C.P. 12(C) AND/OR 12(b)(6) MOTION for Judgmenton the Pleadings as to PLAINTIFF'S THIRD, FOURT, FIFTH, SIXTH & SEVENTH CLAIMS PURSUANT | TO F.R.C.P..12(C) AND/OR 12(b)(6)8 filed. by Defendant LexisNexis Risk Solutions Inc. (Fok, Devin) (Entered: 12/11/2012) 12/11/2012 17 REQUEST FOR JUDICIAL NOTICEByPlaintiffin support ofher opposition to Defendant's Motionfor Judgment On the Pleadings (Fok, Devin) (Entered: 12/11/2012) 12/18/2012 18 NOTICE Notice of Defendant's failure to comply with Rule 5.1 of the FRCP in challenging the constitutionality of the California Investigative Consumer Reporting Agencies Act in its Motion for Judgment on the Pleadings Jane Roe. (Fok, Devin) (Entered: 12/18/2012) 12/19/2012 19 NOTICE OF MOTION AND MOTIONfor Leave tofile First Amended Complaint filed by Plaintiff's Jane Roe. Motion set for hearing on 1/28/2013 at 09:30 AM before Judge Gary A. Feess. (Attachments: # 1 Exhibit Proposed First Amended Complaint, # 2 Proposed Order)(Fok, Devin) (Entered: 12/19/2012) — , " 12/21/2012 20 REPLY In Support Of MOTIONfor Judgmenton the Pleadings as to PLAINTIFF'S THIRD, FOURT, FIFTH, SIXTH & SEVENTH CLAIMS PURSUANTTO E.R.C.P. 12(C) AND/OR 12(b)(6) MOTION for Judgment on the Pleadings as to PLAINTIFF'S THIRD, FOURT, FIFTH, SIXTH & SEVENTH CLAIMS PURSUANTTO F.R.C_P. 12(C) AND/OR 12(b)(6) 8 filed by Defendant LexisNexis Risk SolutionsInc. (Giovannone, John) (Entered: 12/21/2012) ‘ 12/21/2012 21 NOTICEof Constitutional Question filed by Defendant LexisNexis Risk Solutions Inc. (Giovannone, John) (Entered: 12/21/2012) 01/02/2013 22 MINUTE ORDER IN CHAMBERS CERTIFYING CONSTITUTIONAL CHALLENGEby Judge Gary A. Feess: re: MOTION for Judgmenton the Pleadings8 : On November20, 2012, Defendant filed a motion for partial judgment on the pleadings. (Docket No. 8.) Defendant challengesfive of Plaintiff's seven claims. Defendant makes two constitutional challengesin this motion. First, Defendant challenges Plaintiff's claims under the California Investigative Consumer Reporting Agencies Act, Cal. Civ. Code § 1786, et seq., as unconstitutionally vague. Second, Defendant challenges Plaintiff's claims under California's unfair competition law, Cal. Bus. & Prof. Code § 17200,et seq, in part, because they are preempted by the Federal Fair Credit Reporting Act, 15 U.S.C. § 1681, et seq. Pursuant to Federal Rule of Civil Procedure 5.1(b), the Court certifies that these state statutes have been questioned. Rule 5.1(c) provides that the state Attorney General mayintervene within 60 daysafter notice of the constitutional challenge. To accommodate this 60-day period, Defendant's motion has been continued to March 18, 2013 at 9:30 a.m.. (bm) (Entered: 01/03/2013) 01/03/2013 23 MINUTE ORDER IN CHAMBERSRE: MOTION FOR JUDGMENT ON THE PLEADINGSby Judge Gary A. Feess re MOTION for Judgment on the Pleadings 8 : 4 10/13/2014 3:38 PM CF - California Central District ... https://ecf.cacd.uscourts.gov/cgi-bin/DktRpt.pl?623690322602064-L_1_ 0-1 Accordingly, Defendant is ORDEREDtoeither file an amended notice under Rule 5.1 and to file and serve notice of compliance, or notice that it is abandoning its preemption defense nolater than Friday, January 11, 2013. Defendant's pending motion for judgmenton the pleadings will be continued to March 18, 2013 at 9:30 a.m. pending Defendant's notice to the Attorney General of the State of California and the Attorney's General's decision regarding intervention. Defendantis ordered to file updates with the Court every thirty days regarding the Attorney General's decision to intervene. The hearing presently scheduled for Monday, January 7, 2013 is hereby VACATED.(see documentfor further details) (bm) (Entered: 01/03/2013) ‘| 01/07/2013 24 | MEMORANDUMin Opposition to MOTIONfor Leaveto file First Amended Complaint 19 filed by Defendant LexisNexis Risk Solutions Inc. (Attachments: # 1 Declaration of John Giovannone)(Giovannone, John) (Entered: 01/07/2013) 01/10/2013 25 NOTICEof Constitutional Questions filed by Defendant LexisNexis Risk Solutions Inc. (Giovannone, John) (Entered: 01/10/2013) 01/14/2013 26 REPLY Plaintiff's reply to Defendant's Opposition to Plaintiff's MOTION for Leave to file First Amended Complaint 19 filed by Plaintiff Jane Roe. (Fok, Devin) (Entered: 01/14/2013) 01/16/2013 27 SCHEDULING NOTICEby Judge Gary A. Feess re: MOTION for Leaveto file First sO Amended Complaint 19 previously scheduled for 1/28/2013 9:30 AM has been © rescheduled. Motion set for hearing on 3/18/2013 at 09:30 AM before Judge Gary A. Feess. THERE IS NO PDF DOCUMENT ASSOCIATED WITH THIS ENTRY.(dbo) TEXT ONLY ENTRY(Entered: 01/16/2013) 01/22/2013 28 SCHEDULING NOTICEby Judge Gary A. Feess. The Court continues the Scheduling Conference previously set for 1/28/13 to 3/25/2013 at 1:30 PM before Judge Gary A. Feess. THERE IS NO PDF DOCUMENT ASSOCIATED WITH THIS ENTRY.(rfi) TEXT ONLY ENTRY(Entered: 01/22/2013) 01/23/2013 29 Joint STIPULATION to Continue Hearing from March 18, 2013 to March 25, 2013 filed by Defendant LexisNexis Risk Solutions Inc. (Attachments: # 1 Proposed Order Granting Joint Stipulation to Continue Hearint Dates & Scheduling Conference) (Giovannone, John) (Entered: 01/23/2013) , 01/28/2013 30 ORDER GRANTING JOINT STIPULATION TO CONTINUE HEARING DATES me AND SCHEDULING CONFERENCEby Judge Gary A. Feess. The hearing on Motion for Judgment on the Pleadings/to Dismiss shall be and hereby is continued to March 25, 2013 at 9:30 a.m. Likewise, the hearing on Plaintiff's Motion for Leave to Amend Her Complaint to add two additional Plaintiffs and additional claims shall be continued to March 25, 2013 at 9:30 a.m. as well; and The Court's Scheduling Conferencein this action shall be continued to Monday, April 8, 2013 at 1:30 p.m. (bp) (Entered: 01/29/2013) 01/30/2013 31 NOTICE TO COURT PER COURT ORDER(DKT. NO. 23) RE CONSTITUTIONAL QUESTIONSfiled by Attoneys for Defendant LexisNexis Risk Solutions Inc. (Giovannone, John) (Entered: 01/30/2013) 10/13/2014 3:38 PM 2 I R R E O g R Q R A T TT og ee c a e o °F - California Central District re _. -https://ecf.cacd.uscourts.gov/cgi-bin/DktRpt.p1?623690322602064-L_1_ 0-1 02/27/2013 32 NOTICEto Court Per Court Order Re Constitutional Questionsfiled by Defendant LexisNexis Risk Solutions Inc. (Giovannone, John) (Entered: 02/27/2013) 03/12/2013 33 NOTICE TO FILER OF DEFICIENCIESin Electronically Filed Documents RE: Joint Report Of Early Meeting 31 . The following error(s) was found: Incorrect event selected. The correct event is: Pretrial and Tria] Documents-Joint Report Rule 26(f) Discovery Plan. In responseto this notice the court may order (1) an amendedorcorrect documentto be filed (2) the documentstricken or (3) take other action as the court deemsappropriate. You need not take any action in response to this notice unless and until the court directs you to do so. (bm) (Entered: 03/12/2013) 03/12/2013 34 NOTICE OF CLERICAL ERROR:Dueto clerical error, the following docket entry has been corrected as indicated below. Re: Notice of Deficiency in Electronically Filed Documents 33 , Filed Date: 3/12/13. Other: document was docketed to incorrect case, please disregard. (bm) (Entered: 03/12/2013) 03/15/2013 35 ***STRICKEN*** - NOTICE OF MOTION AND MOTIONto Withdraw the Third through Seventh Causes of Action in Plaintiffs Complaint Jane Roe. Motion setfor hearing on 3/18/2013 at 09:30 AM before Judge Gary A. Feess. (Fok, Devin) Modified on 3/19/2013 (rfi). (Entered: 03/15/2013) 03/19/2013 36 ORDERby Judge Gary A. Feess: The documentslisted below were improperly filed for . , the following reasons: Written Notice ofmotion lacking or timeliness of notice | incorrect, Local Rule 6-1; therefore, the following documentshall be stricken from the record and shall not be considered by the Court: MOTION to Withdraw the Third through Seventh Causes of Action in Plaintiff's Complaint 35 . (rfi) (Entered: 03/19/2013) 03/19/2013 37 MINUTES IN CHAMBERS: ORDERbyJudge Gary A. Feess: Defendant's motion for partial judgmenton the pleadings is GRANTED.Plaintiffs third, fourth, fifth, sixth, and seventh causes of action are DISMISSEDwith prejudice. Additionally, Plaintiffs motion for leave to file a first amended complaint is DENIED. The hearing presently scheduled for Monday, March 25, 2013 is hereby VACATED.8 19 (rfi) (Entered: 03/19/2013) 04/01/2013 38 INITIAL REPORTofRULE 26filed by Defendant LexisNexis Risk Solutions Inc. (Giovannone, John) (Entered: 04/01/2013) 04/08/2013 39 MINUTESOFScheduling Conference held before Judge Gary A. Feess: Court and aa counsel confer: Counsel are instructed to fullycomply with Federal Rules of Civil Procedure, Rule 26(a). Court conducts Scheduling Conference and provides counsel with dates. Scheduling and Case Management Orderto follow.Court Reporter: Pat Cuneo.(rf) (Entered: 04/08/20] 3) 04/08/2013 40 SCHEDULING AND CASE MANAGEMENTORDERby Judge Gary A. Feess: TrialEstimate: 5-7 days. Amended Pleadings due by 6/28/2013. Discovery cut-offis9/20/2013. Last date for hearing on motionsis 10/7/2013 at 9:30 a.m.. Proposed PretrialOrderand othertrial documents due by 10/28/2013. Last date to conduct settlementconferenceis 10/18/2013. Hearing on Motions in Limine set for hearing on 12/9/2013 at09:30 AM before Judge Gary A. Feess. Pretrial Conference set for 11/18/2013 at 3:30PM before Judge Gary A. Feess. Jury Trial set for 12/17/2013 at 8:30 AM before JudgeGary A. Feess. (rfi) (Entered: 04/08/2013) 6 10/13/2014 3:38 PM - California Centra] District - . _. https://ecf.cacd uscourts.gov/cgi-bin/DktRpt.p1?623690322602064-L_1_0-1] 04/16/2013 41 NOTICEofAssociation of Counsel associating attorney Craig Davis on behalf of Plaintiff Jane Roe. Filed by Plaintiff Jane Roe (Kim, Joshua) (Entered: 04/16/2013) 04/17/2013 42 NOTICE OF MOTION ANDFirst MOTIONfor Reconsideration filed by Plaintiff Jane Roe. Motion set for hearing on 5/13/2013 at 09:30 AM before Judge Gary A. Feess. (Kim, Joshua) (Entered: 04/17/2013) 04/17/2013 43 NOTICE OF ERRATAfiled by Plaintiff Jane Roe. correcting First MOTION for Reconsideration 42 (Attachments: # 1 Exhibit Notice and Motion to Alter or Amend the Court's Order Granting Defendant's Motionfor Judgmenton the Pleadings)(Kim, Joshua} (Entered: 04/17/2013) mo - - 04/18/2013 44 NOTICE OF APPEALto the 9th CCA Jane Roe. Appeal of Order on Motion for Judgmenton the Pleadings, Order on Motion for Leave to File Document,, 37 (Appeal fee of $455 receipt number 0973-11983712 paid.) (Attachments: # 1 Exhibit March 19, 2013 Order)(Fok, Devin) (Entered: 04/18/2013) 04/18/2013 45 REPRESENTATION STATEMENTre Notice of Appeal to 9th Circuit Court of Appeals, 44 . (Fok, Devin) (Entered: 04/18/2013) 04/19/2013 46 MINUTE ORDER IN CHAMBERSby Judge Gary A. Feess: The Court is currently in receipt of Plaintiff's motion for reconsideration. (Docket No. 42.) Plaintiff filed her -| motion on April 17, 2013 and noticed it for a hearing on May13, 2013. This does not provide sufficient notice. See C.D. Local R. 6-! (requiring a minimum of 28 days notice). Accordingly, Plaintiffs motion is hereby RESCHEDULED to Monday, May20, 2013 at 9:30 a.m. Additionally Plaintiff's caption on this motion lists as Plaintiffs Jane Roe, John Doe, and John Roe. Jane Roe is the only Plaintiff in this action. Accordingly, Plaintiff is ORDEREDto correct the caption on her motionto reflect the proper parties. 42 (rfi) (Entered: 04/22/2013) 04/19/2013 48 NOTIFICATION by Circuit Court ofAppellate Docket Number 13-55658 9th CCA regarding Notice of Appeal to 9th Circuit Court of Appeals 44 as to Plainitff Jane Roe. (dmap) (Entered: 04/23/2013) 04/22/2013 47 NOTICE OF ERRATAfiled by Plaintiff Jane Roe. correcting First MOTIONfor Reconsideration 42 (Attachments: # ] Exhibit 1)(Kim, Joshua) (Entered: 04/22/2013) 04/24/2013 49 Joint STIPULATION to Continue Plaintiff's FRCP 59 Motion hearing from May 20, 2013 to June 3, 2013 Re: First MOTION for Reconsideration 42 , Errata 47 , Errata, 43 , Minutes of In Chambers Order/Directive - no proceeding held, Set/Reset Motion Hearing and R&R Deadlines,,,, 46 filed by defendant LexisNexis Risk SolutionsInc. (Attachments: # 1 Proposed Order)(Giovannone, John) (Entered: 04/24/2013) 04/29/2013 50 ORDER GRANTING JOINT STIPULTION by Judge Gary A. Feess,, The MOTION TO ALTER OR AMEND THE COURT'S ORDER GRANTING DEFENDANT'S MOTION FOR SUMMARY JUDGMENT43 is continued to 6/3/2013 at 09:30 AM before Judge Gary A. Feess.(rfi) (Entered: 04/29/2013) 05/02/2013 51 MINUTES IN CHAMBERS: ORDER RE MOTION FOR RECONSIDERATIONbyJudge Gary A. Feess: Plaintiff's motion for reconsideration is DENIED. The hearingpresently scheduled for Monday, June 3, 2013 is hereby VACATED 42 (rfi) (Entered:05/03/2013) 10/13/2014 3:38 PM ‘CF - California Central District https://ecf.cacd.uscourts.gov/cgi-bin/DktRpt.p!?623690322602064-L_1_0-1 05/03/2013 52 ORDER OF THE CHIEF JUDGE(#13-083) approved by Chief Judge George H. King. Pursuant to the recommendedprocedure adopted by the Court for the CREATION OF CALENDARofJudge Beverly Reid O'Connell, this case is transferred from Judge Gary A. Feess to the calendar of Judge Beverly Reid O'Connell for all further proceedings. The case numberwill now reflect the initials of the transferee Judge CV 12-06284 BRO(Ex). (rn) (Entered: 05/03/2013) 05/20/2013 53 ORDERfrom 9th CCA filed re: Notice of Appeal to 9th Circuit Court of Appeals, 44 filed by Jane Roe, CCA # 13-55658. This appeal.is dismissed. This order served on the district court shall constitute the mandate of thiscourt. Order received in this district on | 5/20/13. (car) (Entered: 05/20/2013) BO - 07/09/2013 54 TEXT ONLY ENTRY (IN CHAMBERS): Judge Beverly Reid O'Connellis participating in a pilot project regarding the submission of SEALED DOCUMENTS. Effective July 8, 2013, all proposed sealed documents must be submitted via e-mail to the Judge's Chambers email at BRO_chambers@cacd.uscourts.gov. Please refer to the judge's procedures and schedules for detailed instructions for submission of sealed documents." THERE IS NO PDF DOCUMENTASSOCIATED WITH THIS ENTRY.(kd) TEXT ONLY ENTRY (Entered: 07/09/2013) 08/06/2013 55 NOTICE OF MOTION AND MOTIONfor Entry of Judgment pursuant to Rule 54(b) _|.as to the Court's March 19, 2013 Order filed by Plaintiff Jane Roe. Motionset for hearing on 9/9/2013 at 01:30 PM before Judge Beverly Reid O'Connell. (Attachments: # 1 Proposed Order)(Davis, Craig) (Entered: 08/06/2013) 08/19/2013 56 Opposition to Plaintiff's Motion for Entry ofA Partial Final Judgment re: MOTIONfor Entry of Judgment pursuant to Rule 54(b) as to the Court's March 19, 2013 Order 55 filed by Defendant LexisNexis Risk Solutions Inc. (Attachments: # 1 Declaration of John R Giovannone)(Giovannone, John) (Entered: 08/19/2013) 08/26/2013 57 REPLYin support of MOTIONfor Entry of Judgment pursuant to Rule 54(b) as to the Court's March 19, 2013 Order 55 filed by Plaintiff Jane Roe. (Attachments: # 1 Declaration of Joshua E. Kim)(Davis, Craig) (Entered: 08/26/2013) 08/28/2013 58 MINUTES IN CHAMBERS: ORDERbyJudge Beverly Reid O'Connell. The Court hereby DENIESPlaintiff's Motion for Entry of a Partial Final Judgment. IT IS SO ORDERED.55 (rfi) (Entered: 08/28/2013) 09/05/2013 59 ORDER FOR CIVIL JURY TRIAL by Judge Beverly Reid O'Connell. Please read this Ordercarefully. Some deadlines and hearings originally scheduled have been rescheduled. Discovery cut-off is 9/20/2013; Last date for hearing on Motionsis 10/21/2013; Proposed Pretrial Order and other documents due by 11/18/2013; Last date to conductsettlement conferenceis ] 0/28/2013; Jury Trial set for 12/17/2013 at 8:30 AM before Judge Beverly Reid O'Connell; Pretrial Conference set for 11/25/2013 at 3:00 PM before Judge Beverly Reid O'Connell. (rfi) (Entered: 09/05/2013) 09/11/2013 60 SETTLEMENT CONFERENCE ORDERby Magistrate Judge Charles F. Eick. The settlement conference is set for Wednesday, 9/25/13 at 1:30 p.m. in Courtroom 20, U.S. Courthouse, 312 N. Spring St., Los Angeles, CA. A settlement conference statement of each party must be submitted directly to the chambersofthe settlement judge (Room 342),or, in the alternative, faxed directly to the chambersof the settlement judge 8 10/13/2014 3:38 PM ‘F - California Central District ... https://ecf.cacd.uscourts.gov/cgi-bin/DktRpt.p1?623690322602064-L_1_0-1 (213-894-3335), no later than 5:00 p.m. on 9/18/13. (sp) (Entered: 09/11/2013) 09/20/2013 61 REQUESTto Appear Telephonically for the Settlement Conference on 9/25/13 filed by Plaintiff Jane Roe. (sp) (Entered: 09/20/2013) 09/20/2013 62 OPPOSITIONto Plaintiff's Request for Permission to not Attend Settlement Conference but to be Telephonically Available filed by Defendant LexisNexis Risk SolutionsInc. (sp) (Entered: 09/20/2013) 09/20/2013 63 MINUTES (IN CHAMBERS): ORDERby Magistrate Judge Charles F. Eick. On 9/20/13, the Court received, read and considered "Plaintiff's Request to Appear Telephonically for the Settlement Conference on 9/25/13" and "Defendant's Opposition to Plaintiffs Request for Permission to Not Attend Settlement Conference but to be Telephonically Available." These documents are ordered filed. Neither party need appearin person at the 9/25/13 settlement conference, but (1) any absent party shall be available by telephone throughout the conference; and (2) each counsel] who appearsat the conference without a client shall have obtained full settlement authority from his or her client prior to 9/25/13. (sp) (Entered: 09/20/2013) 09/23/2013 64 STIPULATIONto Continue Discovery Cut-Off and Related Dates to Facilitate Settlement Efforts Jane Roe. (Attachments: # 1 Proposed Order)(Fok, Devin) (Entered: 09/23/2013) 09/25/2013 67 MINUTESOFSettlement Conference held before Magistrate Judge Charles F. Eick. Case called. Counsel make their appearances. The Court hears discussion. Parties retire to chambers to proceed with the settlement conference. Settlement is reached. Court Recorder: Courtsmart. (sp) (Entered: 09/26/2013) 09/26/2013 65 ORDERby Judge Beverly Reid O'Connell, re Stipulation to Continue. Thetrialis continued to January 28, 2014 at 8:30 a.m. See the Order re Civil Trial for allother dates continued. 64 (rf) (Entered: 09/26/2013) 09/26/2013 66 AMENDED ORDER FORCIVIL JURY TRIAL by Judge Beverly Reid O'Connell: Trial Estimate: 5-7 days. Discovery cut-off is 9/20/2013. Motions in Limineto befiled by 12/16/2013. Last date for hearing on Motionsis 10/21/2013 at 1:30 p.m.. Proposed Pretrial Order and othertrial documents due by 12/9/2013. Last date to conduct settlement conferenceis 11/25/2013. Hearing on Motions In Limineset for hearing on 1/13/2014 at 01:30 PM before Judge Beverly Reid O'Connell. Pretrial Conference set for 12/23/2013 03:00 PM before Judge Beverly Reid O'Connell. Jury Trial set for 1/28/2014 08:30 AM before Judge Beverly Reid O'Connell. (rfi) (Entered: 09/26/2013) 10/01/2013 68 JOINT REPORT of SETTLEMENT CONFERENCEfiled by Plaintiff Jane Roe. (Kim, Joshua) (Entered: 10/01/2013) 10/03/2013 69 SCHEDULING NOTICEby Judge Beverly Reid O'Connell. The Court has received aJoint Report on Settlement Conference, filed October 1, 2013 (docket # 68 ). The CourtVACATESall pending dates. The parties are ordered to file a Stipulation and ProposedOrder Dismissing the action on or before October 25, 2013 or, in the alternative a JointStatus Report. Failure to comply with the Court's Order shall be deemed consent to thedismissal of the action. THERE IS NO PDF DOCUMENT ASSOCIATED WITH THISENTRY. (rf) TEXT ONLY ENTRY(Entered: 10/03/2013) 9 10/13/2014 3:38 PM 10/25/2013 CF - California Central District JOINT REPORTofStatus of Settlement Following Settlement Conferencefiled by Plaintiff Jane Roe. (Fok, Devin) (Entered: 10/25/2013) https://ecf.cacd.uscourts.gov/cgi-bin/DktRpt.p1?623690322602064-L_1_0-] 10/31/2013 7] NOTICEby Judge Beverly Reid O'Connell. The Court has received a Joint Status Report, filed October 25, 2013 (docket # 70 ). The Court VACATESall pending dates. The parties are ordered to file a Stipulation and Proposed Order Dismissing the action on or before November14, 2013 or, in the alternative a Joint Status Report. Failure to comply with the Court's Order shall be deemed consent to the dismissal of the action THEREIS NO PDF DOCUMENT ASSOCIATED WITH THIS ENTRY.(rfi) TEXT ONLY ENTRY(Entered: 10/31/2013) 11/13/2013 STATUS REPORT Following Settlement Conference filed by Plaintiff Jane Roe. (Davis, Craig) (Entered: 11/13/2013) 11/15/2013 73 NOTICEby Judge Beverly Reid O'Connell. The Court has received a Joint Status Report, filed November 13, 2013 (docket # 72 ). The parties are ordered to file a Stipulation and Proposed Order Dismissing the action on or before December6, 2013 or, in the alternative a Joint Status Report. Failure to comply with the Court's Ordershall be deemedconsentto the dismissal of the action THERE IS NO PDF DOCUMENT ASSOCIATED WITH THIS ENTRY.(rfi) TEXT ONLY ENTRY (Entered: 11/15/2013) 12/06/2013 STATUS REPORTFollowing Settlement Conference filed by Plaintiff Jane Roe. (Davis, Craig) (Entered: 12/06/2013) 12/13/2013 Joint STIPULATION to Dismiss Case pursuant to FRCP 41(a)(1) filed by Plaintiff Jane Roe. (Attachments: # 1 Proposed Order Dismissing Action with Prejudice)(Davis, Craig) (Entered: 12/13/2013) 12/17/2013 ORDERby Judge Beverly Reid O'Connell, re Stipulation to Dismiss Case 75 GOODCAUSE APPEARING,it is hereby ordered that above-captioned actionbe and herebyisdismissed with prejudice pursuant to Federal Rule of Civil Procedure 41(a)(1). IT IS SOORDERED.(Made JS-6. Case Terminated.) (rfi) (Entered: 12/17/2013) PACERService Center | Transaction Receipt f40/13/201415:38:03 PACER Client Login: sl0180:2635988:0 Code: first student | _ |Search —}2:12-cv-06284-BRO-E Description: [Docket Report [viteria: [End date: 10/13/2014 Billable 8 Cost: 0.80 Pages: : - O° 10/13/2014 3:38 PM S a t i e A S E , 2/18/2016 12-57246 Docket . . - General Docket United States Court of Appeals for the Ninth Circuit Court of Appeals Docket #: 12-57246 Nature of Suit: 3480 Consumer Credit Gabriel Moran v. The Screening Pros Appeal From: U.S. District Court for Central California, Los Angeles Fee Status: Paid Docketed: 12/12/2012 Case Type Information: 1) civil 2) private 3) null Originating-Court Information: . - District: 0973-2 : 2:12-cv-05808-SVW-AGR Court Reporter: Hilda Avila, Court Reporter Supervisor Trial Judge: Stephen V. Wilson,District Judge Date Filed: 07/05/2012 Date Order/Judgment: 11/20/2012 11/21/2012 Date Order/Judgment EOD: Date Rec'd COA: 12/12/2012 Date NOAFiled: 12/11/2012 Prior Cases: None Current Cases: None GABRIEL FELIX MORAN . Plaintiff - Appellant, THE SCREENING PROS, LLC, a California corporation ttps ://ecf.ca9.uscourts.gov/n/beam/servlet/TransportRoom Devin Heng Fok : os Direct: 310-430-9933 [COR LD NTC Retained] Law Offices of Devin H. Fok Firm: 310-430-9933 P.O. Box 7165 Alhambra, CA 98102-7165 Deepak Gupta Direct: 202-888-1741 [COR LD NTC Retained] Gupta Wessler PLLC 1735 20th Street, NW Washington, DC 20009 Joshua Eunsuk Kim, Attorney Direct: 323-563-3575 [COR LD NTC Retained] A NEW WAYOF LIFE REETRY PROJECT Firm: 323-563-3575 P.O. Box 875288 Los Angeles, CA 90087 Craig Martin Davis, Attorney Direct: 415-857-5820 [COR NTC Retained] Law Offices of Craig Davis 1714 Stockton Street, Third Floor Suite 305 San Francisco, CA 94133 Meredith Desautels Taft, Attorney {COR NTC Retained} LAWYERS' COMMITTEEFOR CIVIL RIGHTS 131 Steuart Street San Francisco, CA 94105 Colby A. Petersen, Esquire, Attorney 1/9 2/18/2016 : : 12-57246 Docket - 1 Defendant - Appellee, CONSUMERFINANCIAL PROTECTION BUREAU Amicus Curiae, EAST BAY COMMUNITY LAW CENTER,etal. Amicus Curiae - Pending, FEDERAL TRADE COMMISSION Amicus Curiae, NATIONAL MULTIFAMILY RESIDENT INFORMATION COUNCIL Amicus Cunae, CALIFORNIA APARTMENT ASSOCIATION Amicus Curiae, Direct: 310-446-9900 [COR LD NTC Retained} JACOBSON, RUSSELL, SALTZ & FINGERMAN, LLP 10866 Wilshire Blvd. Los Angeles, CA 90024 Michael J. Saltz Direct: 310-446-9900 [COR LD NTC Retained] JACOBSON, RUSSELL, SALTZ & FINGERMAN, LLP Suite 1550 10866 Wilshire Blvd. Los Angeles, CA 90024 Gregory Austin Sperry, Esquire Direct: 310-446-9900 [COR LD NTC Retained] JACOBSON, RUSSELL, SALTZ & FINGERMAN, LLP Suite 1550 10866 Wilshire Blvd. Los Angeles, CA 90024 Keith Bradley Direct: 202-435-7005 [COR LD NTC Government] ConsumerFinancial Protection Bureau 1700 G Street NW Washington, DC 20552 Nandan M. Joshi, Counsel Direct: 202-435-7269 [COR LD NTC Retained} ConsumerFinancial Protection Bureau 1700 G Street NW Washington, DC 20552 Sarah Crowley, Senior Litigation Attorney Direct: 510-548-4040 (COR LD NTC Retained] East Bay Community Law Center 3130 Shattuck Avenue Berkeley, CA 94705 Keith Bradiey Direct: 202-435-7005 [COR LD NTC Govemment] (see above) Alison Sue Hightower, Esquire, Attomey Direct: 415-288-6309 [COR LD NTC Retained] Littler Mendelson, P.C. 20th floor 650 California Street San Francisco, CA 94108-2693 Karen McCay, Esquire, Attorney Direct: 408-286-5100 [COR LD NTC Retained] Paht & McCay Suite 1500 225 W. Santa Clara Street San Jose, CA 95113 ttps-//ecf.ca9.uscourts.gov/n/beam/servlet/TransportRoom 2/9 e e 2/18/2016 42-57246 Docket GABRIEL FELIX MORAN, Plaintiff - Appellant, Vv. THE SCREENING PROS,LLC, a California corporation, Defendant - Appellee. ttps ‘//ecf.ca9.uscourts.gov/n/beam/serviet/TransportR oom 3/9 12-57246 Docket 2/18/2016 - 12/12/2012 (2 4 DOCKETED CAUSE AND ENTERED APPEARANCES OF COUNSEL. SEND MQ:Yes.The schedule is 14 pg,487.46 KB Set as follows: Mediation Questionnaire due on 12/19/2012. Transcript ordered by 01/10/2013. Transcript due 04/10/2013. Appellant Gabriel Felix Moran opening brief due 05/20/2013. Appellee The Screening Pros, LLC answering brief due 06/19/2013. Appellant's optional reply brief is due 14 days after service of the answering brief. {8435401] (BG) [Entered: 12/12/2012 10:49 AM] 12/12/2012 fi 9 Filed representation notice of Devin H. Fok for Appellant. Served on 12/11/2012. [8435462] (BG) 2pg,462.45KB [Entered: 12/12/2012 11:02 AM] 01/09/2013 Filed clerk order (Deputy Clerk: EPM): The Court of Appeals’ records do not indicate that appellant has 1pg,25.32KB filed a Mediation Questionnaire in accordance with Circuit Rule 3-4. Within seven (7) daysofthefiling of this order, appellant shall: (a) file a Mediation Questionnaire (available on the court's website, www.ca9.uscourts.gov); (b) dismiss the appeal voluntarily pursuant to Fed. R. App. P. 42(b); or (c) show causein writing why this appeal should not be dismissed pursuant to Ninth Cir. R. 42-1. Failure to comply - with this order will result in dismissal pursuant to Ninth Cir.R. 42-1, [8467887] (WL)[Entered: 01/09/2013 02:50 PM] 01/16/2013 f3 4 Filed (ECF) Appellant Gabriel Feltx Moran Mediation Questionnaire. Date of service: 01/16/2013. 4pg,103.01KB [8477483] (Kim, Joshua) [Entered: 01/16/2013 09:29 PM] 02/11/2013 2 5 Filed order MEDIATION (VLS): The Mediation Program of the Ninth Circuit Court of Appealsfacilitates 5pg,51.46KB settlement while appeals are pending. See Fed. R. App. P. 33 and Ninth Cir. R. 33-1. The court has scheduled a telephone settlement assessment conference, with counsel only, on March 28, 2013, at 11:00 am. PACIFIC (San Francisco) Time to discuss whetherthis case is appropriate for participation in the Mediation Program. The briefing schedule previously set by the court remains in effect. [8507775] (WL)[Entered: 02/11/2013 07:17 AM] 04/03/2013 & 6 Filed order MEDIATION (CLR): The assessment conferenceoriginally scheduled for March 28, 2013, is 1 pg,32.23KB8 rescheduled to May 28, 2013, at 3:00 p.m. PACIFIC (San Francisco) Time. The briefing schedule previously set by the court is reset as follows: appellant shall file an opening brief on or before June 27, 2013; appellee shall file an answering brief on or before July 29, 2013; appellant mayfile an optional reply ~ brief within fourteen (14) days from the service date of the answering brief. [8575957] (BJB) (Entered: 04/03/2013 02:51 PM] 05/29/2013 f 7 Filed order MEDIATION (CLR): The briefing schedule previously set by the court is reset as follows: 2pg,26.15KB appellant shall file an opening brief on or before July 29, 2013; appellee shall file an answering brief on or before August 28, 2013; appellant mayfile an optional reply brief within fourteen (14) days from the service date of the answering brief. The court has determined that this appeal will not be selected for inclusion in the Mediation Program at this. time. Counsel are requested to contact the Circuit Mediator should circumstances develop that warrant further settlement discussions while the appeal is pending.All further inquiries regarding this appeal, including requests for extensions of time, should be directed to the Clerk’s office. [8646713] (WL) [Entered: 05/29/2013 01:58 PM] 07/02/2013ag Filed (ECF) notice of appearance of Deepak Gupta for Appellant Gabriel Felix Moran. Date of service: 2 pg,94.32 KB 07/02/2013. [8688965] (Gupta, Deepak) [Entered: 07/02/2013 11:06 AM] 07/02/2013 &i g Addedattorney Deepak Gupta for Gabriel Felix Moran, in case 12-57246. [8689289] (JFF) [Entered: 07/02/2013 01:34 PM] 07/03/2013 2 419 Filed (ECF) Appellant Gabriel Felix Moran Motion to extend timeto file Opening brief until 09/12/2013 at 6 pg,67.89 KB 12:00 am. Date of service: 07/03/2013. [8690704] (Gupta, Deepak) [Entered: 07/03/2013 11:13 AM] 07/10/2013 52 44 Filed (ECF) Appellee The Screening Pros, LLC response non-opposing motion (,motion to extend time to 3pg,23.09KB file brief). Date of service: 07/10/2013. [8698798] (Saltz, Michael) (Entered: 07/10/2013 04:31 PM] 07/15/2013 G2 42 Filed (ECF) notice of appearance of Craig Martin Davis for Appellant Gabriel Felix Moran. Date of service: 2pg9,91.82KB 07/15/2013. [8703794] (Davis, Craig) {Entered: 07/15/2013 12:30 PM] 07/15/2013 §2 43 Addedattorney Craig Martin Davis for Gabriel Felix Moran [8704582] (JFF) [Entered: 07/15/2013 04:02 PM] 07/17/2013 (4 Filed clerk order (Deputy Clerk: LBS): Appellant’s unopposed motion for an extension of time tofile the 1 pg, 88.11 KB opening brief is granted. The opening brief is due September 12, 2013; the answering brief is due October 15, 2013; and the optional reply brief is due within 14 days after service of the answering brief. [8707164] (LBS) [Entered: 07/17/2013 10:46 AM] 07/17/201345 Filed (ECF) notice of appearance of Meredith, Patricia, Desautels Taft for Appellant Gabriel Felix Moran. 2 pg,14.83 KB Date of service: 07/17/2013. [8707758] (Desautels Taft, Meredith) (Entered: 07/17/2013 02:24 PM] | 07/17/201316 Added attorney Meredith Desautels Taft for Gabriel Felix Moran, in case 12-57246. [8707997] (JFF) : [Entered: 07/17/2013 03:28 PM] 09/06/2013 §) 47 Filed (ECF) Appellant Gabriel Felix Moran Unopposed Motion to extend timeto file Openingbrief until 5 pg,66.07 KB 09/27/2013 at 12:00 pm, Motion to extend timeto file appendix until 09/27/2013 at 12:00 pm. Date of service:-09/06/2013. [8772668] (Gupta, Deepak) [Entered: 09/06/2013.03:01 PM] tips //ecf.ca9.uscourts.gov/r/beam/servliet/TransportRoom 4/9 2/18/2016 09/11/2013 09/27/2013 09/27/2013 09/30/2013 10/04/2013 10/04/2013 10/04/2013 10/07/2013 10/07/2013 10/08/2013 40/08/2013 10/11/2013 10/17/2013 10/18/2013 11/06/2013 44/42/2013- is 18 1 pg, 33.43 KB Ga ke 19 77 pg, 4. a PES (2 20 47 pg, 298.43 KB ae@ 2 Pg. 21 6. 7 MB 2 pg, 8 93 KB 23 33 pg, 255.1 KB 2 24 4g, 96.5 KB 27 — 29 ue 30 © 31 2 pg, 42.07 KB ‘certification, attached to the end of each copyof the brief, that the brief is identical to the version “Entered appearance of Amici Curiae ConsumerFinancial Protection Bureau and FTC; Amicus Curiae - - Received 7-paper copies: of Amicusbrief {23]filed by East Bay Community Law Center. [8858915] (SD)- 12-57246 Docket Filed clerk order (Deputy Clerk: LBS): Appellant's unopposed motion for a second extension of timeto file the opening brief and excerpts of record is granted. The opening brief and excerpts of record are due September 27, 2013; the answering brief is due October 28, 2013; and the optional reply brief is due within 14 days after service of the answering brief. [8777450] (WL) [Entered: 09/11/2013 09:41 AM} Submitted (ECF) excerpts of record. Submitted by Appellant Gabriel Felix Moran. Date of service: 09/27/2013. [8799170} (Gupta, Deepak) [Entered: 09/27/2013 07:28 AM] Submitted (ECF) Opening Brief for review. Submitted by Appellant Gabriel Felix Moran. Date of service: 09/27/2013. [8801013] (Gupta, Deepak) [Entered: 09/27/2013 10:49 PM} Filed clerk order: The openingbrief [20] submitted by Gabriel Felix Moranis filed. Within 7 days of the filing of this order, filer is ordered to file 7 copies of the brief in paper format, accompanied by submitted electronically. Cover color: blue. The paper copies shall be printed from the PDF version of the brief-created from the word processing application, not from PACER.or Appellate ECF. The Court has reviewed the excerpts of record {19} submitted by Gabriel Felix Moran. Within 7 days of this order,filer is orderedto file 4 copies of the excerpts in paper format, with a white cover. The paper copies mustbe in the format described in 9th Circuit Rule 30-1.6. [8803320] (LA) [Entered: 09/30/2013 05:57 PM] Submitted (ECF) Amicus brief for review (by government or with consent per FRAP 29(a)). Submitted by ConsumerFinancial Protection Bureau joined by Federal Trade Commission. Date of service: 10/04/2013. [8809793]-[COURT UPDATE: Attached corrected brief. Resent NDA. 10/07/2013 by RY] (Bradley, Keith) (Entered: 10/04/2013 12:26 PM] Submitted (ECF) Amicus brief for review. Submitted by East Bay Community Law Center. Date of service: 10/04/2013. [8810684]-[COURT UPDATE:Attached corrected brief. Edited dockettext to reflect contentoffiling (brief only). Resent NDA. 10/08/2013 by RY] (TSK) [Entered: 10/04/2013 07:31 PM] Filed (ECF) East Bay Community Law Center et. al Motion to become amicus curiae. Date of service: 10/04/2013. [8810696] (TSK) [Entered: 10/04/2013 11:08 PM] Pending East Bay Community Law Center, et al. [8811959] (LA) [Entered: 10/07/2013 03:05 PM] Filed clerk order: The amicus brief [22] submitted by CohsumerFinancial Protection Bureau and FTCis filed. Within 7 daysofthefiling of this order, filer is ordered to file 7 copies of the brief in paper format, accompanied by certification, attached to the end of each copyof the brief, that the briefis identical to the version submitted electronically. Cover color. green. The paper copies shall be printed from the PDF version of the brief created from the word processing application, not from PACERor Appellate ECF. [8811965] (LA) [Entered: 10/07/2013 03:06 PM] Filed Appellant Gabriel Felix Moran paper copies of excerpts of record [19] in 1 volume(s). [8814431] (CT) [Entered: 10/08/2013 04:30 PM] Received 7 paper copies of Opening brief [20] filed by Gabriel Felix Moran. [8814780] (SD) [Entered: 10/09/2013 09:02 AM} Received 7 paper copies of Amicusbrief [22] filed by Consumer Financial Protection Bureau and FTC. [8818726] (SD) [Entered: 10/11/2013 11:05 AM] : Filed (ECF) Streamlined request for extension of time to file Answering Brief by Appellee The Screening Pros, LLC. New requested due date is 11/27/2013 at 11:59 pm. [8826290] (Saltz, Michael) (Entered: 10/17/2013 05:55 PM] Streamlined-request [30] by Appellee The Screening Pros, LLC to extend time tofile the brief is approved. Amendedbriefing schedule: Appellee The Screening Pros, LLC answering brief due 11/27/2013. The optional reply brief is due 14 days from the date of service of the answering brief. [8827362] (GS) [Entered: 10/18/2013 01:25 PM} Filed clerk order (Deputy Clerk: LBS): The motion of East Bay Community Law Centerfor leave tofile an amicus Curiae brief in support of the appellant, and any responsethereto, shall be referred to the panel that will consider the merits of the case for resolution. East Bay Community Law Centeris reminded that a motion for leave to file an amicus curiae brief is to state that movant endeavored to obtain the consent of all parties to the filing of the brief as an alternative tofiling a motion. See Sth Cir. R. 29-3. Within 7 days after the date of this order, amici curiae is orderedto file 7 copies of the brief in paper format, with a green cover, accompaniedby certification (attached to the end of each copy of the brief) that the brief is identical to the version submitted electronically. A sample certification is available on the Court's website, www.ca9.uscourts.gov at the Electronic Filing - ECF link. The paper copies shall be printed from the PDF version of the brief created from the word processing application, not from PACERor Appellate ECF. The paper copies shall be submitted to the principal office of the Clerk. For regular U.S. mail, the address is P.O. Box 193939, San Francisco, CA 94119-3939. For overnight mail, the address is 95 Seventh Street, San Francisco, CA 94103-1526. [8852313] (BJB) (Entered: 11/06/2013 09:54 AM] ttps:/ecf.ca9.uscourts.gov/n/beam/servleUTransportRoom 5/9 2/18/2016 11/15/2013 11/15/2013 11/20/2013 01/27/2014 01/28/2014 01/31/2014 01/31/2014 02/03/2014 02/03/2014 02/03/2014 02/03/2014 02/04/2014 02/04/2014 02/04/2014 02/05/2014 01/27/2014 § LE 33 ee ie 34 6 pg, 353.02 KB enn @ 3 6 pg, 353.81 KB 36 1 pg, 85.38 KB 522 pg, 18.35 MB i 38 41 pg, 1.66 MB Es Le 39 2 pg, 87.17 KB & 44 2 pg, 86.67 KB te AB. 19 pg,-82.76 KB—. -- 46 ee 47 2 pg, 86.62 KB = 48 12-57246 Docket {Entered: 11/12/2013 01:54 PM] Filed (ECF) Appellee The Screening Pros, LLC Motion to extend timeto file Answering brief until 01/27/2014 at 11:59 pm. Date of service: 11/15/2013. [8864290} (Saltz, Michael) [Entered: 11/15/2013 12:39 PM] Filed (ECF) Appellee The Screening Pros, LLC Amended Motion to extend time to file Answering brief until 01/27/2014 at 11:59 pm. Date of service: 11/15/2013. [8865000] (Saltz, Michael) [Entered: 11/15/2013 04:09 PM] Filed clerk order (Deputy Clerk: LKK): Granting Motion (ECFFiling)filed by Appellee The Screening Pros, LLC; Granting Motion (ECF Filing) motion to extend timetofile brief filed by Appellee The Screening Pros, LLC Appellee The Screening Pros, LLC answering brief due 01/27/2014. The optional reply briefis due 14 days after service of the answering brief. [8870499] (LKK) [Entered: 11/20/2013 12:59 PM] Submitted(ECF) Answering Brief and supplemental excerpts of record for review. Submitted by Appellee The Screening Pros, LLC. Date of service: 01/27/2014. [8954138] (Saltz, Michael) [Entered: 01/27/2014 03:49 PM] Filed (ECF) Appellee The Screening Pros, LLC Motion to take judicial notice of Congressional Record and FTC Staff Report. Date of service: 01/27/2014. [8954187} (Saltz, Michael) [Entered: 01/27/2014 03:59 PM} Filed clerk order: The answeringbrief [37] submitted by The Screening Pros, LLCis filed. Within 7 days ofthefiling of this order, filer is ordered to file 7 copies of the brief in paper format, accompanied by certification, attached to the end of each copyof the brief, that the brief is identical to the version submitted electronically. Cover color: red. The paper copies shall be printed from the PDF version of the brief created from the word processing application, not from PACERor Appellate ECF. The Court has reviewed the supplemental excerpts of record [37] submitted by The Screening Pros, LLC. Within 7 days of this order,filer is ordered to file 4 copies of the excerpts in paper format, with a white cover. The paper copies mustbe in the format described in 9th Circuit Rule 30-1.6. [8956232] (TH) (Entered: 01/28/2014 02:43PM}--> men es Filed Appellee The Screening Pros, LLC paper copies of supplemental excerpts of record [37] in 2 volumes. [8961278] (CT) [Entered: 01/31/2014 01:39 PM] Received 7 paper copies of Answering brief [37] filed by The Screening Pros, LLC. [8961668] (SD) (Entered: 01/31/2014 03:13 PM] Submitted (ECF) Amicus brief for review (by govemmentor with consent per FRAP 29(a)). Submitted by National Multifamily Resident Information Council. Date of service: 02/03/2014. [8962901] (Hightower, Alison) [Entered: 02/03/2014 11:30 AM] Entered appearance of Amicus Curiae National Multifamily Resident Information Council. [8963994] (LA) [Entered: 02/03/2014 04:32 PM] Filed clerk order: The amicus brief [42] submitted by National Multifamily Resident Information Council is filed. Within 7 days of thefiling of this order, filer is orderedtofile 7 copies of the brief in paper format, accompaniedby certification, attached to the end of each copyof the brief, that the brief is identical to the version submitted electronically. Cover color. green. The paper copies shall be printed from the PDF version of the brief created from the word processing application, not from PACER or Appellate ECF. [8963999] (LA) [Entered: 02/03/2014 04:33 PM] Submitted (ECF) Amicusbrief for review (by governmentor with consent per FRAP 29(a)). Submitted by Amicus Brief of California Apartment Association in-Support of the-Positions of Appellee Screening Pros,- LLC and Affirmanceof the District Court's Grant of Summary Judgment and Order Granting Appellee's Motion to Dismiss. Date of service: 02/03/2014. [8964102]-[COURT UPDATE: Attached correctedbrief. Resent NDA. 02/04/2014 by RY] (McCay, Karen) [Entered: 02/03/2014 05:04 PM} Entered appearance of Amicus Curiae California Apartment Association. [8965772] (LA) [Entered: 02/04/2014 03:40 PM] Filed clerk order: The amicus brief [45] submitted by California Apartment Associationis filed. Within 7 daysofthefiling of this order, filer is ordered to file 7 copies of the brief in paper format, accompanied by cettification, attached to the end of each copy ofthe brief, that the brief is identical to the version submitted electronically. Cover color: green. The paper copies shall be printed from the PDF version of the brief created from the word processing application, not from PACERor Appellate ECF. [8965774] (LA) (Entered: 02/04/2014 03:41 PM] Received 7 paper copies of Amicusbrief[42] filed by National Multifamily Resident Information Council. [8966673} (SD) [Entered: 02/05/2014 10:47 AM] Filed (ECF) Streamlined request for extensionof time to file Reply Brief by Appellant Gabriel Felix Moran. New requested due date is 03/12/2014 at 12:00 am. [8967999] (Gupta, Deepak) [Entered: 02/05/2014 ttps:/ecf.ca9.uscourts.gov/r/beam/servlet/TransportRoom 6/9 2/18/2016 02/06/2014 02/07/2014 03/08/2014 03/10/2014 04/08/2014 04/18/2014 04/21/2014 04/24/2014 11/24/2014 12/03/2014 12/08/2014 12/08/2014 12/08/2014 12/09/2014 01/20/2015 01/20/2015 01/23/2015 tips :ecf.ca9.uscourts.gov/n/beam/serviel/TransportRoom 04/07/2014. Lo 50 451 = 52 5 pg, 69.31 KB (2 53 1 pg, 84.67 KB B54 5 pg, 67.52 KB C3 55 1 pg, 84.67 KB (56 23 pg, 147.6 KB C57 2 pg, 86.49 KB 1) 58 59 i 63 ““€pg, 9.06 KB ges 64 1 pg, 82.21 KB a 65 1 pg, 39.08 KB coseed eaE 6 1 pg, 19.32 KB 67 1 pg, 19.39 KB 12-57246 Docket - 08:31 PM) Streamlined request [49] by Appellant Gabriel Felix Moran to extend timeto file the brief is approved. Amendedbriefing schedule: the optional reply brief is due 3/12/14. [8969038] (CG) [Entered: 02/06/2014 02:01 PM] Received 7 paper copies of Amicusbrief [45] filed by California Apartment Association. [8970729] (SD) [Entered: 02/07/2014 01:31 PM] Filed (ECF) Appellant Gabriel Felix Moran Unopposed Motion to extend timetofile Reply brief until 04/11/2014 at 12:00 am. Date of service: 03/08/2014. [9008004] (Gupta, Deepak) [Entered: 03/08/2014 06:50 AM] Filed clerk order (Deputy Clerk: amt): Granting (ECF Filing) motion to extend timeto file reply brief. The reply brief is due April 11, 2014. [9009248] [12-57246] (AT) [Entered: 03/10/2014 02:08 PM] Filed.(ECF)Appellant Gabriel Felix.Moran_Unopposed Motion to extend time to file a reply until - 04/18/2014 at 12:00 pm. Date of service: 04/07/2014. [9046881] (Gupta, Deepak) [Entered: 04/07/2014 11:49 AM] Filed clerk order (Deputy Clerk: amt): Granting unopposedlate (ECFFiling) motion to extend timetofile reply filed by Appellant Gabriel Felix Moran. The reply brief is due April 18, 2014, [9049083] [12-57246] (AT) [Entered: 04/08/2014 12:31 PM} Submitted (ECF) Reply Brief for review. Submitted by Appellant Gabriel Felix Moran. Date of service: 04/18/2014. [9064586] (Gupta, Deepak) (Entered: 04/18/2014 08:56 PM] Filed clerk order. The reply brief [56] submitted by Gabriel Felix Moranis filed. Within 7 days ofthe filing of this order,filer is ordered to file 7 copies of the brief in paper format, accompaniedbycertification, attached to the end of each copyofthe brief, that the brief is identical to the version submitted electronically. Cover color: gray. The paper copies shall be printed from the PDF version of the brief created from the word processing application, not from PACERor Appellate ECF. [9065356] (CT) [Entered: 04/21/2014 11:05 AM] Received 7 paper copies of Reply brief [56] filed by Gabriel Felix Moran. [9070870] (SD) [Entered: 04/24/2014 10:41 AM] Notice of Oral Argument on Monday, February 2, 2015 - 09:00 A.M. - Courtroom 1 - Pasadena, CA. View the Oral Argument Calendarfor your case here. Whenyou have reviewed the calendar, download the ACKNOWLEDGMENT OF HEARING NOTICE form, complete the form, andfile it via Appellate ECF or return the completed form to: PASADENAOffice. {9323359} (LN) [Entered: 11/24/2014 08:31 AM] Filed (ECF) Acknowledgmentof hearing notice. Location: Pasadena.Filed by Attorney Mr. Deepak Gupta for Appellant Gabriel Felix Moran. [9334896][12-57246] (Gupta, Deepak) [Entered: 12/03/2014 09:28 AM} Filed (ECF) notice of appearance of Nandan M. Joshi for Amicus Curiae Consumer Financial Protection Bureau. Date of service: 12/08/2014. [9340911] [12-57246] (Joshi, Nandan) [Entered: 12/08/2014 02:54 PM] Added attorney Nandan M. Joshi for Consumer Financial Protection Bureau, in case 12-57246. [9341513] (RR) [Entered: 12/08/2014 05:53 PM] Filed (ECF) Amicus Curiae ConsumerFinancial Protection Bureau Motion for miscellaneous relief [MOTION OF AMICUS CURIAE CONSUMER FINANCIAL PROTECTION BUREAU TO PARTICIPATE IN ORAL ARGUMENT AND FOR DIVIDED ARGUMENT].Date of service: 12/08/2014. [9341527] [12- 57246] (Joshi, Nandan) {Entered: 12/08/2014 06:26 PM] Filed (ECF) Acknowledgmentof hearing notice. Location: Pasadena. Filed by Attorney Alison Sue Hightower, Esquire for Amicus Curiae National Multifamily Resident Information Council. [9342055] [12- 57246] (Hightower, Alison) (Entered: 12/09/2014 10:20 AM] Fited clerk order (Deputy Clerk: WL): Amicus Curiae ConsumerFinancial Protection Bureau’s Motion to Participate in Oral Argument and for Divided Argument is GRANTED. The Bureau will be allotted 5 minutes of the 20 minutes of argument time currently allocated to Plaintiff-Appellant. [9387939] (WL) [Entered: 01/20/2015 01:13 PM] Filed (ECF) Acknowedgmentof hearing notice. Location: Pasadena. Filed by Attorney Mr. Nandan M. Joshi for Amicus Curiae ConsumerFinancial Protection Bureau. [9388007] [12-57246] (Joshi, Nandan) {Entered: 01/20/2015 01:29 PMj Filed (ECF) Acknowledgmentof hearing notice. Location: Pasadena. Filed by Attorney Mr. Michael J. Saltz for Appellee The Screening Pros, LLC. [9393438] [12-57246] (Saltz, Michael) [Entered: 01/23/2015 10:23 AM] 79 2/48/2016 12-57246 Docket - 02/02/2015 =: 68 ARGUED AND SUBMITTED TO HARRY PREGERSON, ANDREW J. KLEINFELD and JACQUELINE H. NGUYEN.[9405571] (LN) [Entered: 02/02/2015 03:10 PM] 02/06/2015 <2 6g Fited (ECF) Appellee The Screening Pros, LLC citation of supplemental authorities. Date of service: 27 pg,683.32 KB 01/06/2015. [9412349] [12-57246]—[Edited: Attached searchable version ofletter. 02/06/2015 by RY] (Saltz, Michael) (Entered: 02/06/2015 01:02 PM] 02/10/2015 §2 79 Filed (ECF) Appellant Gabriel Felix Moran citation of supplemental authorities. Date of service:Teen 1pg,702.38KB 02/10/2015. [9416980] [12-57246] (Gupta, Deepak) [Entered: 02/10/2015 04:10 PM] 02/12/2015 (2 74 Filed (ECF) Appellant Gabriel Felix Moran citation of supplemental authorities. Date of service:iat 10p9.231MB 02/12/2015. [9420175] {12-57246} (Gupta, Deepak) (Entered: 02/12/2015 04:09 PM] 02/17/2015 {2 72 Filed (ECF) Appellee The Screening Pros, LLC citation of supplemental authorities. Date of service: 2pg,61.48KB 02/17/2015. [9422891] [12-57246] (Saltz, Michael) [Entered: 02/17/2015 12:03 PM] {| 03/30/2015--§2.. 73----. . --Filed.(ECF).Appellee.-The ScreeningPros,.LLC-citation of supplemental authorities. Date of service: 3pg,72.01KB 03/30/2015. [9476693] [12-57246] (Saltz, Michael) [Entered: 03/30/2015 12:32 PM] 08/14/2015 (2 74 Filed (ECF) Appellant Gabriel Felix Moran citation of supplemental authorities. Date of service: 19 pg,346.78 KB 08/14/2015. [9647698] [12-57246] (Gupta, Deepak) [Entered: 08/14/2015 01:00 PM] 09/01/2015 § 75 Filed (ECF) Appellee The Screening Pros, LLC citation of supplemental authorities. Date of service:ce 3pg,73.03KB 09/01/2015. [9668600] [12-57246] (Saltz, Michael) [Entered: 09/01/2015 04:13 PM] 09/14/2015 © 76 Terminated Joshua Eunsuk Kim for Gabriel Felix Moran in 12-57246 (terminated due to incorrect account information) [9681079] (JT) [Entered: 09/14/2015 10:26 AM] 09/17/2015 §: 77 Addedattorney Joshua Eunsuk Kim for Gabriel Felix Moran, in case 12-57246. [9687003] (SML) {Entered: 09/17/2015 02:09 PM] 12/15/2015 Filed (ECF) Appellant Gabnel Felix Moran citation of supplemental authorities. Date of service: 12/15/2015. {9792885} [12-57246] (Gupta, Deepak) [Entered: 12/15/2015 11:36 AM] 12/18/2015 (& 79 Filed (ECF)notice of appearance of Lisa Knox for Amicus Curiae - Pending East Bay Community Law 2pg,75.56KB Center. Date of service: 12/18/2015. [9798368] [12-57246] (Knox, Lisa) [Entered: 12/18/2015 14:02 AM] 12/18/2015 £2 gg Attomey Tanya S. Koshy in 12-57246 substituted by Attorney Lisa Knox in 12-57246 [9799185] (RR) [Entered: 12/18/2015 03:32 PM] 12/28/2015 {2 24 Filed (ECF) notice of appearance of Sarah Alison Crowley for Amicus Curiae - Pending East Bay 2 pg,78.73 KB Community Law Center. Date of service: 12/28/2015. [9807396] [12-57246] (Crowley, Sarah) [Entered: 12/28/2015 05:08 PM] 12/29/2015 £8 go Attomey Lisa Knox in 12-57246 substituted by Attorney Sarah Crowley in 12-57246 [9809301] (RR) [Entered: 12/29/2015 04:59 PM} 01/13/2016 © 93 Filed order (HARRY PREGERSON, ANDREW J. KLEINFELD and JACQUELINE H. NGUYEN) 1 pg, 41.63 KB Submission of this case is vacated and proceedings are stayed pending resolution of Connorv. First Student Inc., 239 Cal. App. 4th 526 (2015) (review granted by the California Supreme Court on November 24, 2015). [9825932] (WL) [Entered: 01/13/2016 11:45 AM] tips://ecf.ca9.uscourts.gov/n/beam/servlet/TransportRoam 8/9 2/18/2016 : - 12-57246 Docket Clear All, ®) Documents and Docket Summary ‘2 Documents Only % Include Page Numbers Selected Pages:0 - __- Selected Size: OKB [een ee oe PACERService Center. | | Transaction Receipt | I U.S. Court of Appeals for the 9th Circuit - 02/18/2016 16:38:31 | [PACER Login: _|ifeinbergjackson [Client Code: |[first student i |Description: |[Docket Report (filtered) [Search Criteria: |12-57246 | [Billable Pages: \|7 Cost: il0.70 | tips :/ecf.ca9.uscourts.gov/n/bearmn/servlel/TransportRoom 9/9 SERVICE LIST Catha Worthman, Esq. Todd Jackson, Esq. FEINBERG, JACKSON, WORTHMAN & WASOW 383 Fourth Street, Suite 201 Oakland, California 94607 Counselfor Plaintiffs Rod M.Fliegel, Esq. Littler Mendelson, PC 650 California Street, 20" Floor San Francisco, CA 94108 Counselfor Defendant HireRight Solutions, Inc. Ronald A. Peters, Esq. Littler Mendelson, PC 50 West San FernandoStreet, 15"" Floor San Jose, CA 95113-2431 Counselfor Defendants First Student, Inc. and First Transit, Inc. Clerk of the Los Angeles Superior Court 600 Commonwealth Ave. Los Angeles, CA 90005 Clerk, Court of Appeals Second District, Division Four 300 S. Spring Street 2nd Floor, North Tower Los Angeles, CA 90013 PROOFOF SERVICE SUPREME COURT OF CALIFORNIA I declare that I am employed in the County of Alameda, State of California. I am over the age of eighteen (18) years and not a party to the within cause. My business addressis Sundeen Salinas & Pyle, 428 13"Street, 8" Floor, Oakland, California 94612. Onthis day,I served the foregoing Document(s): PLAINTIFF AND APPELLANT EILEEN CONNER’S MOTION FOR JUDICIAL NOTICE; MEMORANDUMOFPOINTS AND AUTHORITIES IN SUPPORT; AND DECLARATION IN SUPPORT [x] By Overnight Delivery to the parties in said action, as addressed below, in accordance with Code of Civil Procedure §1013(c), by placing a true and correct copy thereof enclosed in a sealed envelope, with delivery fees prepaid or provided for, in a designated outgoing overnight mail. Mail placed in that designated area is picked up that same day, in the ordinary course of businessfor delivery the following day via United Parcel Service Overnight Delivery. California Supreme Court Office of the Clerk 350 McAllister Street San Francisco, CA 94102-7000 [x] By Mailto the parties in said action, as addressed below, in accordance with Code of Civil Procedure §1013(a), by placing a true copy thereof enclosed in a sealed envelope in a designated area for outgoing mail, addressed as set forth below. At Sundeen Salinas & Pyle, mail placed in that designated area is given the correct amount of postage andis either picked up or deposited that same day, in the ordinary course of business in a United States mailboxin the City of Oakland, California. See attached service list. I declare under penalty of perjury that the foregoing is true and correct. Executed in Oakland, California, on this date, February 19, 2016. (Va. LALd Verenice Andrade