On October 20, 2009, the House of Representatives passed H.R. 3763, which would amend the Fair Credit Reporting Act to exclude certain businesses from the “Red Flag” identity theft guidelines, including health care practices with 20 or fewer employees. The bill also would require the Federal Trade Commission to establish a process to allow businesses to apply for an exclusion from the rules. The legislation, which was approved by a 400-0 vote, now moves to the Senate.  Note that while the Federal Trade Commission (FTC) had stated that it will begin enforcing the Red Flag Rules effective November 1, 2009, the agency recently announced it was extending the Red Flag Rules enforcement date until June 1, 2010.

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