Text: SSB03065 Text: SSB03067 Text: SSB03000 - SSB03099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 537.9101 DEFINITIONS. 1 2 1. "Consumer" means a natural individual. 1 3 2. "Consumer report" has the meaning assigned by the Fair 1 4 Credit Reporting Act, 15 U.S.C. } 1681a. 1 5 3. "Consumer reporting agency" has the meaning assigned by 1 6 the Fair Credit Reporting Act, 15 U.S.C. } 1681a. 1 7 4. "File", when used in connection with information on any 1 8 consumer, means all of the information on that consumer 1 9 recorded and retained by a consumer reporting agency 1 10 regardless of how the information is stored. 1 11 5. "Security alert" means a notice placed on a consumer 1 12 file at the request of the consumer that is sent to a 1 13 recipient of a consumer report involving that consumer file, 1 14 signifying the fact that the consumer's identity may have been 1 15 used without the consumer's consent to fraudulently obtain 1 16 goods or services in the consumer's name. 1 17 6. "Security block" means a notice placed on a consumer 1 18 file that prohibits a consumer reporting agency from releasing 1 19 a consumer report relating to the extension of credit 1 20 involving that consumer file without the express authorization 1 21 of the consumer. 1 22 Sec. 2. NEW SECTION. 537.9102 SECURITY ALERT. 1 23 1. REQUESTING ALERT. Upon request by a consumer in 1 24 writing or by telephone, with proper identification provided 1 25 by the consumer, a consumer reporting agency shall place a 1 26 security alert on the consumer's file not later than two 1 27 business days after the agency receives the request. A 1 28 consumer may include with the security alert request a 1 29 telephone number to be used by persons to verify the 1 30 consumer's identity before entering into a transaction with 1 31 the consumer. The security alert must remain in effect for 1 32 not less than ninety days after the date the agency places the 1 33 security alert on the file. There is no limit on the number 1 34 of security alerts a consumer may request. At the termination 1 35 of the security alert, upon written request or telephone 2 1 authorization by the consumer, and with proper identification 2 2 provided by the consumer, the agency shall provide the 2 3 consumer with a copy of the consumer's file. 2 4 2. NOTIFICATION OF ALERT. 2 5 a. A consumer reporting agency shall send an alert to each 2 6 person who requests a consumer report if a security alert is 2 7 in effect for the consumer file involved regardless of whether 2 8 a full credit report or summary report is requested and shall 2 9 include a verification telephone number for the consumer if 2 10 the consumer has provided a telephone number under subsection 2 11 1. 2 12 b. A person who receives notification of a security alert 2 13 in connection with a request for a consumer report for the 2 14 approval of a credit-based application including an 2 15 application for a new extension of credit, a purchase, lease, 2 16 or rental agreement for goods, or for an application for a 2 17 non-credit-related service, shall not lend money, extend 2 18 credit, or authorize an application without taking reasonable 2 19 steps to verify the consumer's identity. For the purposes of 2 20 this section, "extension of credit" does not include an 2 21 increase in an existing open-end credit plan or any change to 2 22 or review of an existing credit account. 2 23 c. If a consumer has included with a security alert 2 24 request a specified telephone number to be used for identity 2 25 verification purposes, a person who receives that number with 2 26 a security alert shall contact the consumer using that number 2 27 or take reasonable steps to verify the consumer's identity and 2 28 confirm that an application for an extension of credit is not 2 29 the result of identity theft before lending money, extending 2 30 credit, or completing any purchase, lease, or rental of goods, 2 31 or approving any non-credit-related services. 2 32 3. TOLL-FREE ALERT REQUEST NUMBER. A consumer reporting 2 33 agency that compiles and maintains files on a nationwide basis 2 34 as defined by 15 U.S.C. } 1681a(p) shall maintain a toll-free 2 35 telephone number that will accept security alert requests from 3 1 consumers twenty-four hours a day, seven days a week, subject 3 2 to reasonable maintenance or service outages beyond the 3 3 control of the consumer reporting agency. 3 4 4. VIOLATIONS OF ALERT. A creditor, potential creditor, 3 5 consumer reporting agency, or other entity that violates any 3 6 provision of this section shall be liable to the victim of an 3 7 identity theft for all of the documented out-of-pocket 3 8 expenses caused by the violation committed by such creditor, 3 9 potential creditor, consumer reporting agency, or other entity 3 10 and suffered by the victim as a result of the identity theft, 3 11 plus reasonable attorney fees and court costs. A violation of 3 12 this section is an unlawful practice under section 714.16. 3 13 Sec. 3. NEW SECTION. 537.9103 SECURITY BLOCK. 3 14 1. REQUESTING BLOCK. On written request by a consumer 3 15 that includes proper identification and a copy of a valid 3 16 police report or complaint alleging a violation of section 3 17 715A.8, a consumer reporting agency shall, within five 3 18 business days of receipt, place a security block on a 3 19 consumer's file. 3 20 2. DECLINING BLOCK. A consumer reporting agency may 3 21 decline to block or may rescind any block of consumer 3 22 information in the exercise of good faith and reasonable 3 23 judgment, if the consumer reporting agency believes any of the 3 24 following: 3 25 a. The information was blocked due to a misrepresentation 3 26 of a material fact by the consumer. 3 27 b. The information was blocked due to fraud, in which the 3 28 consumer participated, or of which the consumer had knowledge, 3 29 and which may for purposes of this section be demonstrated by 3 30 circumstantial evidence. 3 31 c. The consumer agrees that portions of the blocked 3 32 information or all of it were blocked in error. 3 33 d. The consumer knowingly obtained or should have known 3 34 that the consumer obtained possession of goods, services, or 3 35 money as a result of the blocked transaction or transactions. 4 1 e. The consumer's report of a violation of section 715A.8 4 2 was not authentic. 4 3 3. NOTIFICATION OF BLOCK. A consumer reporting agency 4 4 shall promptly notify a person who requests a consumer report 4 5 if a security block is in effect for the consumer file 4 6 involved in that report and the effective date of the block. 4 7 4. RELEASE OF BLOCK. 4 8 a. On written request or by telephone and with proper 4 9 identification provided by a consumer, a consumer reporting 4 10 agency shall remove a security block not later than the third 4 11 business day after the date the agency receives the request. 4 12 The block may be temporarily lifted for a certain 4 13 predesignated period of time if requested by the consumer. 4 14 b. If blocked information is unblocked pursuant to this 4 15 subsection, the consumer shall be notified in the same manner 4 16 as consumers are notified of the reinsertion of information 4 17 pursuant to the Fair Credit Reporting Act, 15 U.S.C. } 1681i. 4 18 The prior presence of the blocked information in the consumer 4 19 reporting agency's file on the consumer is not evidence of 4 20 whether the consumer knew or should have known that the 4 21 consumer obtained possession of any goods, services, or money 4 22 as described in subsection 2, paragraph "d". 4 23 5. FALSE INQUIRIES. A consumer reporting agency shall 4 24 delete from a consumer report inquiries for consumer reports 4 25 based upon credit requests that the consumer reporting agency 4 26 verifies were initiated as a result of a violation of section 4 27 715A.8. 4 28 6. FEES. A consumer reporting agency may impose a 4 29 reasonable charge on a consumer for placing a security block 4 30 on a consumer file. 4 31 7. EXEMPTIONS FROM BLOCK. The provisions of this section 4 32 do not apply to any of the following: 4 33 a. A state or local governmental entity, including a law 4 34 enforcement agency or private collection agency, if the entity 4 35 or agency is acting under a court order, warrant, subpoena, or 5 1 administrative subpoena. 5 2 b. A consumer reporting agency that acts as a reseller of 5 3 credit information by assembling and merging information 5 4 contained in the databases of other consumer reporting 5 5 agencies, and that does not maintain a permanent database of 5 6 credit information from which new consumer reports are 5 7 produced. 5 8 c. A check services or fraud prevention services company 5 9 that issues reports on incidents of fraud or authorizations 5 10 for the purpose of approving or processing negotiable 5 11 instruments, electronic funds transfers, or similar payment 5 12 methods. 5 13 d. A demand deposit account information service company 5 14 that issues reports regarding account closures due to fraud, 5 15 substantial overdrafts, automatic teller machine abuse, or 5 16 similar negative information regarding a consumer to inquiring 5 17 banks or other financial institutions for use only in 5 18 reviewing a consumer request for a demand deposit account at 5 19 the inquiring bank or financial institution. 5 20 8. VIOLATIONS OF BLOCK. A violation of this section is an 5 21 unlawful practice under section 714.16. 5 22 Sec. 4. NEW SECTION. 537.9104 IDENTITY THEFT PASSPORT. 5 23 In a criminal proceeding under section 715A.8 or a civil 5 24 proceeding under section 714.16B, a person whose name or other 5 25 identification has been used without the person's consent or 5 26 authorization may petition the court in that proceeding for an 5 27 order declaring the petitioner a victim of identity theft. 5 28 The attorney general with the cooperation of the department of 5 29 public safety may issue the person an identity theft passport 5 30 stating that such an order has been issued. The attorney 5 31 general may provide access to identity theft information to 5 32 law enforcement agencies. The attorney general shall adopt 5 33 rules necessary to enforce this section. 5 34 Sec. 5. NEW SECTION. 614.4A IDENTITY THEFT. 5 35 In actions for relief on the ground of identity theft under 6 1 section 714.16B, the cause of action shall not be deemed to 6 2 have accrued until the theft complained of was discovered by 6 3 the party aggrieved. 6 4 Sec. 6. Section 714.16B, subsection 1, Code 2003, is 6 5 amended to read as follows: 6 6 1.OneFive thousand dollars or three times the actual 6 7 damages, whichever is greater. 6 8 Sec. 7. Section 715A.6, Code Supplement 2003, is amended 6 9 by adding the following new subsection: 6 10 NEW SUBSECTION. 4. a. A seller that accepts credit cards 6 11 for the transaction of business shall not print more than the 6 12 last four digits of the credit card account number, the credit 6 13 card expiration date, or both, on any sales receipt issued to 6 14 the cardholder. 6 15 b. This subsection shall apply only to sales receipts that 6 16 are electronically printed and shall not apply to transactions 6 17 in which the sole means of recording the credit card is by 6 18 handwriting or by an imprint or copy of the credit card. 6 19 c. A violation of this subsection is a simple misdemeanor. 6 20 A violation of this subsection is also an unlawful practice 6 21 under section 714.16. 6 22 Sec. 8. Section 715A.8, subsection 3, Code Supplement 6 23 2003, is amended to read as follows: 6 24 3.If the value of the credit, property, or services6 25exceeds one thousand dollars, the person commitsA violation 6 26 of this section is a class "D" felony.If the value of the6 27credit, property, or services does not exceed one thousand6 28dollars, the person commits an aggravated misdemeanor.6 29 Sec. 9. Section 715A.8, Code Supplement 2003, is amended 6 30 by adding the following new subsection: 6 31 NEW SUBSECTION. 5. Upon conviction of an offender under 6 32 this section, the court may, upon motion by the state or upon 6 33 application by a victim or a victim's representative, issue an 6 34 order which may be used to correct the credit history of the 6 35 victim. The order include any of the following: 7 1 a. A description of the person whose credit history may be 7 2 affected by the offender's crime of identity theft, with 7 3 sufficient identifying information to assist another person in 7 4 correcting the credit history. 7 5 b. A statement that the person described in paragraph "a" 7 6 was the victim of a crime of identity theft that may have 7 7 affected the person's credit history. 7 8 Sec. 10. IDENTITY THEFT GUIDE AND TRAINING STUDY. The 7 9 department of public safety shall conduct a study regarding 7 10 the costs and feasibility of developing and distributing an 7 11 identity theft guide and providing training to identity theft 7 12 specialists at local law enforcement agencies and county 7 13 attorney offices. The study shall be conducted with the input 7 14 of the attorney general, local law enforcement agencies, 7 15 county attorneys, representatives of the banking industry, and 7 16 other interested persons requested by the director of the 7 17 department of public safety. The department shall submit a 7 18 report summarizing the results of the study and making 7 19 recommendations regarding the costs and feasibility of 7 20 developing and distributing an identity theft guide and 7 21 providing training to identity theft specialists to the 7 22 general assembly by January 15, 2005. 7 23 EXPLANATION 7 24 This bill establishes various protections from and 7 25 increases penalties for identify theft and directs the 7 26 department of public safety to perform a feasibility study 7 27 regarding identity theft training and development of an 7 28 identity theft guide. 7 29 The bill permits victims of identity theft to request that 7 30 a security alert be placed on the victim's consumer report, 7 31 which is more commonly known as a credit report. Before 7 32 issuing credit on a consumer report containing a security 7 33 alert, the creditor must take reasonable steps to verify the 7 34 identity of the person whose consumer report contains the 7 35 security alert. Failure to verify the identity of the person 8 1 before issuing credit may result in liability to the creditor 8 2 for any damages suffered by the person as a result of the 8 3 credit being issued. A violation is also a consumer fraud 8 4 under Code section 714.16. The bill requires consumer 8 5 reporting agencies to maintain a nationwide toll-free 8 6 telephone number to accept requests for security alerts. 8 7 The bill permits victims of identity theft to request that 8 8 a security block be placed on the victim's consumer report. A 8 9 security block prohibits a consumer reporting agency from 8 10 releasing the victim's consumer report relating to the 8 11 extension of credit without the victim's express 8 12 authorization. A consumer reporting agency may decline to 8 13 place the block under specific circumstances. With proper 8 14 identification, the victim may request that the block be 8 15 temporarily lifted or permanently released. The consumer 8 16 reporting agency must notify the consumer when a block is 8 17 placed and when a block is released. A consumer reporting 8 18 agency may impose a reasonable fee to place a block on a 8 19 consumer file. Certain entities are exempt from compliance 8 20 with a security block. Violations are treated as consumer 8 21 fraud under Code section 714.16. 8 22 The bill provides for the issuance of an identity theft 8 23 passport to a victim by the attorney general where a court 8 24 order has been issued declaring a person to be a victim of 8 25 identity theft. The attorney general has rulemaking authority 8 26 regarding the issuance of identity theft passports. 8 27 The bill provides that the statute of limitations with 8 28 regard to civil causes of action for identity theft under Code 8 29 section 714.16B shall not begin to accrue until the fraud is 8 30 discovered by the victim. The bill increases the amount of 8 31 damages that may be recovered in civil actions for identity 8 32 theft from $1,000 to $5,000, or three times the actual 8 33 damages, whichever is greater. 8 34 The bill prohibits retailers from electronically printing a 8 35 customer's credit card number, except for the last four digits 9 1 or credit card expiration date, on the customer's receipt. 9 2 Violations are simple misdemeanors. 9 3 The bill provides that all criminal violations of Code 9 4 section 715A.8 are class "D" felonies by striking the 9 5 threshold damage requirement of $1,000 for an identity theft 9 6 crime to be a class "D" felony and striking the provision that 9 7 identity theft crimes involving less than $1,000 are 9 8 aggravated misdemeanors. A class "D" felony is punishable by 9 9 confinement for no more than five years and a fine of at least 9 10 $750 but not more than $7,500. 9 11 After a conviction in a criminal action for identity theft 9 12 under Code section 715A.8, the court may order the correction 9 13 of the credit history of the identity theft victim. 9 14 The bill directs the department of public safety to conduct 9 15 a feasibility study regarding the development and distribution 9 16 of an identity theft guide and regarding training of identity 9 17 theft specialists at local county attorney offices and local 9 18 law enforcement agencies. 9 19 LSB 5053XC 80 9 20 kk/sh/8
Text: SSB03065 Text: SSB03067 Text: SSB03000 - SSB03099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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