First Regular Session
Sixty-second General Assembly
LLS NO. 99-0388.02 Jane Brown SENATE BILL 99-045
STATE OF COLORADO
BY SENATOR Lacy;
also REPRESENTATIVE Dean.
BUSINESS AFFAIRS & LABOR
A BILL FOR AN ACT
101 CONCERNING THE CREATION OF AN ELECTRONIC ACCESS PROGRAM FOR
102 THE CONFIDENTIAL RELEASE OF EMPLOYMENT INFORMATION TO
103 CONSUMER REPORTING AGENCIES BY THE COLORADO DEPARTMENT
104 OF LABOR AND EMPLOYMENT, AND, IN CONNECTION THEREWITH,
105 AUTHORIZING THE DEPARTMENT TO ENTER INTO CONTRACTS WITH
106 CONSUMER REPORTING AGENCIES FOR THE PURPOSE OF FUNDING,
107 DESIGNING, AND IMPLEMENTING SUCH PROGRAM.
Bill Summary
(Note: This summary applies to this bill as introduced and does
not necessarily reflect any amendments that may be subsequently
adopted.)
Requires the department of labor and employment ("department")
to contract with consumer reporting agencies for the design,
implementation, and administration of an electronic access program that
will enable the department to release the wage and employment history
information of credit applicants to consumer reporting agencies.
Requires the consumer reporting agency to fund the cost of the program.
Requires the department to establish minimum security requirements and
liability insurance standards.
Permits such information to be released only for the purpose of
supporting consumer credit transactions, meeting standard underwriting
requirements, or satisfying creditor's obligations under state and federal
fair credit reporting laws. Requires the written consent of the credit
applicant before the information will be released. Limits the scope of
information that will be released.
[ ] denotes HOUSE amendment. { } denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate material to be deleted from existing statute.
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1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. Article 14.3 of title 12, Colorado Revised Statutes,
3 is amended BY THE ADDITION OF A NEW SECTION to read:
4 12-14.3-103.5. Disclosure of employment information by
5 department of labor and employment - electronic access program.
6 (1) (a) THE DEPARTMENT SHALL ENTER A WRITTEN CONTRACT WITH AT
7 LEAST ONE CONSUMER REPORTING AGENCY FOR THE DESIGN,
8 INSTALLATION, AND ADMINISTRATION OF TECHNOLOGICAL MEANS TO
9 ACCESS WAGE AND EMPLOYMENT HISTORY INFORMATION IN THE
10 POSSESSION OF THE DEPARTMENT. SUCH TECHNOLOGY SHALL PROVIDE
11 THE BASIS FOR AN ELECTRONIC ACCESS PROGRAM THAT SHALL BE
12 ADMINISTERED BY THE DEPARTMENT AND SHALL PROVIDE CONSUMER
13 REPORTING AGENCIES WITH THE NAMES AND ADDRESSES OF EMPLOYERS
14 THAT PAID WAGES TO A GIVEN INDIVIDUAL AND THE AMOUNT OF SUCH
15 WAGES. NOTWITHSTANDING ANY PROVISION OF THIS PARAGRAPH (a) TO
16 THE CONTRARY, THE DEPARTMENT SHALL NOT PROVIDE WAGE AND
17 EMPLOYMENT HISTORY INFORMATION TO ANY CONSUMER REPORTING
18 AGENCY BEFORE THE CONSUMER REPORTING AGENCY OR AGENCIES UNDER
19 CONTRACT WITH THE DEPARTMENT PAY ALL DEVELOPMENT AND OTHER
20 STARTUP COSTS INCURRED BY THE STATE IN CONNECTION WITH THE
21 DESIGN, INSTALLATION, AND ADMINISTRATION OF TECHNOLOGICAL
22 SYSTEMS AND PROCEDURES FOR THE ELECTRONIC ACCESS PROGRAM.
23 (b) THE PERIOD FOR WHICH WAGE AND EMPLOYMENT HISTORY
24 INFORMATION SHALL BE RELEASED PURSUANT TO PARAGRAPH (a) OF THIS
25 SUBSECTION (1) SHALL NOT EXCEED THE SIXTEEN QUARTERS PRECEDING
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1 THE QUARTER IN WHICH THE REQUEST FOR INFORMATION IS MADE.
2 (c) FOR PURPOSES OF THIS SUBSECTION (1):
3 (I) "CONSUMER REPORTING AGENCY" HAS THE SAME MEANING AS
4 THAT SET FORTH IN THE FEDERAL "FAIR CREDIT REPORTING ACT", 15
5 U.S.C. SEC. 1681a, AND STATE LAWS PERTAINING TO CONSUMER
6 REPORTING AGENCIES.
7 (II) "DEPARTMENT" MEANS THE DEPARTMENT OF LABOR AND
8 EMPLOYMENT.
9 (2) THE DEPARTMENT OF LABOR AND EMPLOYMENT SHALL
10 ESTABLISH TECHNOLOGICAL REQUIREMENTS, MINIMUM AUDIT, SECURITY,
11 NET WORTH, AND LIABILITY INSURANCE STANDARDS, AND ANY OTHER
12 TERMS AND CONDITIONS IT DEEMS NECESSARY TO SAFEGUARD THE
13 CONFIDENTIALITY OF THE RELEASED INFORMATION AND TO OTHERWISE
14 SERVE THE PUBLIC INTEREST.
15 (3) (a) A CREDITOR SHALL OBTAIN THE WRITTEN CONSENT OF A
16 CREDIT APPLICANT TO OBTAIN SUCH APPLICANT'S WAGE AND EMPLOYMENT
17 HISTORY FROM THE DEPARTMENT OF LABOR AND EMPLOYMENT. SUCH
18 CONSENT SHALL:
19 (I) INCLUDE AUTHORIZATION FOR THE RELEASE OF THE APPLICANT'S
20 WAGE AND EMPLOYMENT HISTORY INFORMATION;
21 (II) SPECIFICALLY IDENTIFY THE PARTIES AUTHORIZED TO RECEIVE
22 THE RELEASED INFORMATION;
23 (III) INCLUDE A STATEMENT THAT THE RELEASE IS MADE FOR THE
24 SOLE PURPOSE OF A SPECIFIC APPLICATION FOR CREDIT; AND
25 (IV) INCLUDE AN ACKNOWLEDGMENT THAT THE APPLICANT
26 UNDERSTANDS THAT HIS OR HER WAGE AND EMPLOYMENT HISTORY
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1 INFORMATION SHALL BE RELEASED AS A RESULT OF GRANTING THE
2 WRITTEN CONSENT AND THAT STATE AGENCY FILES CONTAINING SUCH
3 INFORMATION MAY BE ACCESSED.
4 (b) FOR PURPOSES OF THIS SUBSECTION (3), "CREDITOR" HAS THE
5 SAME MEANING AS SET FORTH IN THE FEDERAL "FAIR DEBT COLLECTION
6 PRACTICES ACT", 15 U.S.C. 1692 ET SEQ.
7 (4) THE INFORMATION RELEASED PURSUANT TO THIS SECTION
8 SHALL ONLY BE USED TO:
9 (a) SUPPORT A SINGLE CONSUMER CREDIT TRANSACTION;
10 (b) SATISFY THE CREDITOR'S STANDARD UNDERWRITING
11 REQUIREMENTS OR THOSE OTHERWISE IMPOSED ON THE CREDITOR; AND
12 (c) SATISFY THE CREDITOR'S OBLIGATIONS UNDER APPLICABLE
13 STATE AND FEDERAL FAIR CREDIT REPORTING LAWS.
14 (5) NOTHING IN THIS SECTION SHALL SUPERCEDE THE PRIVACY
15 LAWS OF THIS ARTICLE OR FEDERAL LAWS CONCERNING FAIR CREDIT
16 REPORTING. ANY RELEASE OF EMPLOYMENT HISTORY AND WAGE
17 INFORMATION PURSUANT TO THIS SECTION SHALL ONLY BE FOR THE
18 PURPOSES AUTHORIZED BY AND IN A MANNER PERMITTED BY THE FEDERAL
19 DEPARTMENT OF LABOR'S UNEMPLOYMENT INSURANCE PROGRAM LETTER
20 23-96.
21 SECTION 2. Safety clause. The general assembly hereby finds,
22 determines, and declares that this act is necessary for the immediate
23 preservation of the public peace, health, and safety.