PRINTER'S NO. 2455
No. 1938 Session of 1997
INTRODUCED BY BISHOP, PESCI, BELARDI, McGEEHAN, YOUNGBLOOD,
MELIO, CIVERA, C. WILLIAMS, MANDERINO AND A. H. WILLIAMS,
OCTOBER 21, 1997
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, OCTOBER 21, 1997
AN ACT
1 Prohibiting the use of commercial credit ratings which do not
2 contain certain information; conferring powers and duties on
3 the Department of Community and Economic Development;
4 establishing remedies; and imposing penalties.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Short title.
8 This act shall be known and may be cited as the Commercial
9 Credit Rating Fairness Act.
10 Section 2. Definitions.
11 The following words and phrases when used in this act shall
12 have the meanings given to them in this section unless the
13 context clearly indicates otherwise:
14 "Business decision." A decision to do any of the following:
15 (1) Buy or sell property.
16 (2) Extend credit.
17 (3) Contract with a person for services.
18 (4) Employ an individual or discharge an individual from
1 employment.
2 "Department." The Department of Community and Economic
3 Development of the Commonwealth.
4 "Report." A report prepared by a commercial credit rating
5 agency stating the credit rating of the subject of the report.
6 Section 3. Department.
7 The department has the following powers and duties:
8 (1) To investigate violations of section 4.
9 (2) To impose penalties under section 6.
10 Section 4. Reports.
11 (a) Requirements.--A report must contain the following
12 information about the subject of the report:
13 (1) Social Security number or employer identification
14 number of the subject.
15 (2) If the subject is an individual, the subject's
16 birthdate.
17 (b) Effect.--If a report does not comply with subsection
18 (a), all of the following apply:
19 (1) A person may not use the report to make a business
20 decision.
21 (2) Any action by the Commonwealth or a political
22 subdivision based on the report is invalid.
23 Section 5. Remedy.
24 (a) Damages.--A person aggrieved by a violation of section
25 4(b)(1) may bring an action for damages.
26 (b) Mandamus.--A person aggrieved by a violation of section
27 4(b)(2) may bring an action for mandamus to correct the improper
28 action.
29 Section 6. Penalty.
30 (a) Imposition.--For a violation of section 4(b)(1), the
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1 department may impose an administrative penalty of $500 to
2 $3,000.
3 (b) Procedure.--This section is subject to 2 Pa.C.S. Ch. 5
4 Subch. A (relating to practice and procedure of Commonwealth
5 agencies) and Ch. 7 Subch. A (relating to judicial review of
6 Commonwealth agency action).
7 Section 7. Effective date.
8 This act shall take effect in 60 days.
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