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U.S. House Passes Legislation Providing Red Flags Rule Exemption, Senate to Consider

October 23, 2009

On Tuesday, the U.S. House of Representatives unanimously passed legislation that would exempt small businesses, including most private practice dentists, from the "Red Flags" identity theft rules slated to take effect November 1. The bill, H.R. 3763, would provide an exemption for healthcare, law and accounting practices with 20 or fewer employees and give the Federal Trade Commission the flexibility to waive the rule for other industries and professions.

The bill will now go before the Senate for consideration. The Senate must also pass the bill before the exemption will take effect.



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