2009 California Civil Code - Section 1786-1786.2 :: Article 1. General Provisions

SECTION 1786-1786.2

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 purposes relating to
the hiring of dwelling units, subpoenas and court orders, licensure,
and other lawful purposes.
   (b) There is a need to insure that investigative consumer
reporting agencies exercise their grave responsibilities with
fairness, impartiality, and a respect for the consumer's right to
   (c) The crime of identity 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 means it can often go
undetected for years without the victim being aware his 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 purpose of this title to require that investigative
consumer reporting agencies adopt reasonable procedures for meeting
the needs of commerce for employment, insurance information, and
information relating to the hiring of dwelling units in a manner
which is fair and equitable to the consumer, with regard to the
confidentiality, accuracy, relevancy, and proper utilization of the
information in accordance with the requirements of this title.
   (g) The Legislature hereby intends to regulate investigative
consumer reporting agencies pursuant to this title in a manner which
will best protect the interests of the people of the State of

1786.1.  This title may be referred to as the Investigative Consumer
Reporting Agencies Act.

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 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 set forth in subdivision (n) of
Section 791.02 of the Insurance Code.
   (d) The term "investigative consumer reporting agency" means any
person who, for monetary fees or dues, engages in whole or in 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 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.
   (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 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.

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