288.398. Contracts with consumer reporting agencies authorized--information limited--privacy rules apply--written consent, contents--use of information limited, verified by consumer reporting agency-- - Missouri Statutes

Contracts with consumer reporting agencies authorized--informationlimited--privacy rules apply--written consent, contents--useof information limited, verified by consumer reportingagency--confidentiality safeguards required--noncompliance,liability--information obtained under false pretenses,penalty--disputes.

288.398. 1. The division of employment security may contract withone or more consumer reporting agencies, with preference given to thosewhich maintain offices within the state of Missouri, to provide secureelectronic access to information provided in the quarterly wage report tothe division of employment security by employing units. The consumerreporting agency shall be limited to use of such information to thosepermitted under Section 604 of the Federal Fair Credit Reporting Act (15U.S.C. 1681b).

2. The information provided to a consumer reporting agency shall belimited to the amount of wages reported by each employing unit, with theemploying unit's name and address, for each of or up to the last eightquarters. For the purposes of this section, "consumer reporting agency"has the meaning assigned by Section 603(f) of the Fair Credit Reporting Act(15 U.S.C. 1681f).

3. The information is subject to the privacy rules of this state andthe Federal Fair Credit Reporting Act in addition to this section. Theconsumer reporting agency shall require that any user of the informationshall, prior to obtaining the wage report information, obtain a writtenconsent from the individual to whom that wage report information pertains.

4. The written consent shall prominently contain language specifyingthe following:

(1) The consent to disclose is voluntary and refusal to consent todisclosure of state wage information shall not be the basis for the denialof credit;

(2) If consent is granted, the information shall be released tospecified parties;

(3) Authorization by the individual is necessary for the release ofwage and employment history information;

(4) The specific application or transaction for the sole purpose ofwhich release is made;

(5) Division of employment security files containing wage andemployment history information submitted by employers may be accessed; and

(6) The identity and address of parties authorized to receive thereleased information.

5. The consumer reporting agency shall require that the informationreleased shall be used only to verify the accuracy of the wage oremployment information previously provided by an individual in connectionwith a specific transaction to satisfy its user's standard underwritingrequirements or those imposed upon the user, and to satisfy user'sobligations, under applicable state or federal fair credit reporting laws.

6. The division of employment security shall establish minimum audit,security, net worth, and liability insurance standards, technologicalrequirements, any other terms and conditions deemed necessary in thediscretion of the division to safeguard the confidentiality of theinformation and to otherwise serve the public interest. The division shallnot pay any costs associated with the establishment or maintenance of theaccess provided for by this subsection, including but not limited to thecosts of any audits of the consumer reporting agency or users by thedivision. The division may void any contract authorized by this section ifthe contractor is not complying with this section. Except in cases ofwillful and wanton misconduct, the state and division are* immune from anyliability in connection with information provided under this section,including but not limited to liability with regard to the accuracy or useof the information. Any fees received by the division of employmentsecurity from a consumer reporting agency pursuant to this section shall bedeposited in the Missouri unemployment insurance trust fund and dedicatedsolely for benefit payments.

7. Any person or entity who willfully fails to comply with anyrequirement imposed under this subsection with respect to any consumer isliable in Missouri state courts to that consumer to the same extent asprovided for in Section 616 of the Federal Fair Credit Reporting Act (15U.S.C. 1681n).

8. A consumer may bring an action in a circuit court to enjoin aviolation of this act**.

9. Any person who knowingly and willfully obtains informationpursuant to this subsection from a consumer reporting agency under falsepretenses shall be punished to the same extent as provided under Section619 of the Federal Fair Credit Reporting Act (15 U.S.C. 1681q).

10. If the completeness or accuracy of any item of information in aconsumer's file at a consumer reporting agency obtained under thissubsection is disputed, the dispute resolution shall be handled accordingto Section 611 of the Federal Fair Credit Reporting Act (15 U.S.C. 1681l).

(L. 2004 H.B. 1268 § 1211)

Effective 1-01-05

*Word "is" appears in original rolls.

**"This act" (H.B. 1268 & 1211, 2004) contains numerous sections. Consult Disposition of Sections table for a definitive listing.