Senate File 2277 - Enrolled

PAG LIN



  1  1                                             SENATE FILE 2277
  1  2
  1  3                             AN ACT
  1  4 RELATING TO OFFENSES AGAINST IDENTITY BY ESTABLISHING A
  1  5    PROCEDURE TO SECURE CREDIT INFORMATION AND PROVIDING A
  1  6    PENALTY.
  1  7
  1  8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1  9
  1 10    Section 1.  NEW SECTION.  714F.1  DEFINITIONS.
  1 11    For the purposes of this chapter, unless the context
  1 12 otherwise requires:
  1 13    1.  "Consumer" means an individual who is a resident of
  1 14 this state.
  1 15    2.  "Consumer credit report" means a consumer report, as
  1 16 defined in 15 U.S.C. } 1681a, that is used or collected in
  1 17 whole or in part for the purpose of serving as a factor in
  1 18 establishing a consumer's eligibility for credit for personal,
  1 19 family, or household purposes.
  1 20    3.  "Consumer reporting agency" means the same as defined
  1 21 in 15 U.S.C. } 1681a(f).  A consumer reporting agency does not
  1 22 include any of the following:
  1 23    a.  A check service or fraud prevention service company
  1 24 that reports on incidents of fraud or issues authorizations
  1 25 for the purpose of approving or processing negotiable
  1 26 instruments, electronic fund transfers, or similar methods of
  1 27 payment.
  1 28    b.  A deposit account information service company that
  1 29 issues reports regarding account closures due to fraud,
  1 30 overdrafts, automated teller machine abuse, or similar
  1 31 negative information regarding a consumer to inquiring
  1 32 financial institutions for use only in reviewing the
  1 33 consumer's request for a deposit account at the inquiring
  1 34 financial institution.
  1 35    c.  Any person or entity engaged in the practice of
  2  1 assembling and merging information contained in a database of
  2  2 one or more consumer reporting agencies and does not maintain
  2  3 a permanent database of credit information from which new
  2  4 consumer reports are produced.
  2  5    4.  "Identification information" means as defined in
  2  6 section 715A.8.
  2  7    5.  "Identity theft" means as used in section 715A.8.
  2  8    6.  "Normal business hours" means Sunday through Saturday,
  2  9 between the hours of 6:00 a.m. and 9:30 p.m., central standard
  2 10 time or central daylight saving time.
  2 11    7.  "Proper identification" means the same as defined in 15
  2 12 U.S.C. } 1681h(a)(1).
  2 13    8.  "Security freeze" means a notice placed in a consumer
  2 14 credit report, at the request of the consumer and subject to
  2 15 certain exceptions, that prohibits a consumer reporting agency
  2 16 from releasing the consumer credit report or score relating to
  2 17 the extension of credit.
  2 18    Sec. 2.  NEW SECTION.  714F.2  SECURITY FREEZE.
  2 19    A consumer may submit by certified mail to a consumer
  2 20 reporting agency a written request for a security freeze.  The
  2 21 consumer must submit proper identification and the applicable
  2 22 fee with the request.  Within five business days after
  2 23 receiving the request, the consumer reporting agency shall
  2 24 commence the security freeze.  Within ten business days after
  2 25 commencing the security freeze, the consumer reporting agency
  2 26 shall send a written confirmation to the consumer of the
  2 27 security freeze, a personal identification number or password,
  2 28 other than the consumer's social security number, for the
  2 29 consumer to use in authorizing the suspension or removal of
  2 30 the security freeze, including information on how the security
  2 31 freeze may be temporarily suspended.
  2 32    Sec. 3.  NEW SECTION.  714F.3  TEMPORARY SUSPENSION.
  2 33    1.  A consumer may request that a security freeze be
  2 34 temporarily suspended to allow the consumer reporting agency
  2 35 to release the consumer credit report for a specific time
  3  1 period.  The consumer reporting agency may develop procedures
  3  2 to expedite the receipt and processing of requests which may
  3  3 involve the use of telephones, facsimile transmissions, the
  3  4 internet, or other electronic media.  The consumer reporting
  3  5 agency shall comply with the request within three business
  3  6 days after receiving the consumer's written request, or within
  3  7 fifteen minutes after the consumer's request is received by
  3  8 the consumer reporting agency through facsimile, the internet,
  3  9 or other electronic contact method chosen by the consumer
  3 10 reporting agency, or the use of a telephone, during normal
  3 11 business hours.  The consumer's request shall include all of
  3 12 the following:
  3 13    a.  Proper identification.
  3 14    b.  The personal identification number or password provided
  3 15 by the consumer reporting agency.
  3 16    c.  Explicit instructions of the specific time period
  3 17 designated for suspension of the security freeze.
  3 18    d.  Payment of the applicable fee.
  3 19    2.  A consumer reporting agency need not remove a security
  3 20 freeze within the timeframes provided in subsection 1 if the
  3 21 consumer fails to meet the requirements of subsection 1, or
  3 22 the ability of the consumer reporting agency to remove the
  3 23 security freeze within fifteen minutes is prevented by one of
  3 24 the following:
  3 25    a.  An act of God, including a fire, earthquake, hurricane,
  3 26 storm, or similar natural disaster or phenomenon.
  3 27    b.  Unauthorized or illegal acts by a third party,
  3 28 including terrorism, sabotage, riot, vandalism, labor strikes
  3 29 or disputes disrupting operations, or similar occurrences.
  3 30    c.  Operational interruption, including electrical failure,
  3 31 unanticipated delay in equipment or replacement part delivery,
  3 32 computer hardware or software failures inhibiting response
  3 33 time, or similar disruption.
  3 34    d.  Governmental action, including emergency orders or
  3 35 regulations, judicial law enforcement action, or similar
  4  1 directives.
  4  2    e.  Regularly scheduled maintenance, during other than
  4  3 normal business hours, of the consumer reporting agency's
  4  4 systems, or updates to the consumer reporting agency's
  4  5 systems.
  4  6    f.  Commercially reasonable maintenance of, or repair to,
  4  7 the consumer reporting agency's systems that is unexpected or
  4  8 unscheduled.
  4  9    g.  Receipt of a removal request outside of normal business
  4 10 hours.
  4 11    Sec. 4.  NEW SECTION.  714F.4  REMOVAL.
  4 12    A security freeze remains in effect until the consumer
  4 13 requests that the security freeze be removed.  A consumer
  4 14 reporting agency shall remove a security freeze within three
  4 15 business days after receiving a request for removal that
  4 16 includes proper identification of the consumer, the personal
  4 17 identification number or password provided by the consumer
  4 18 reporting agency, and payment of the applicable fee.
  4 19    Sec. 5.  NEW SECTION.  714F.5  FEES.
  4 20    1.  A consumer reporting agency shall not charge any fee to
  4 21 a consumer who is the victim of identity theft for commencing
  4 22 a security freeze, temporary suspension, or removal if with
  4 23 the initial security freeze request, the consumer submits a
  4 24 valid copy of the police report concerning the unlawful use of
  4 25 identification information by another person.
  4 26    2.  A consumer reporting agency may charge a fee not to
  4 27 exceed ten dollars to a consumer who is not the victim of
  4 28 identity theft for each security freeze, removal, or for
  4 29 reissuing a personal identification number or password if the
  4 30 consumer fails to retain the original number.  The consumer
  4 31 reporting agency may charge a fee not to exceed twelve dollars
  4 32 for each temporary suspension of a security freeze.
  4 33    Sec. 6.  NEW SECTION.  714F.6  THIRD PARTIES.
  4 34    If a third party requests a consumer credit report that is
  4 35 subject to a security freeze, the consumer reporting agency
  5  1 may advise the third party that a security freeze is in
  5  2 effect.  If the consumer does not expressly authorize the
  5  3 third party to have access to the consumer credit report
  5  4 through a temporary suspension of the security freeze, the
  5  5 third party shall not be given access to the consumer credit
  5  6 report but may treat a credit application as incomplete.
  5  7    Sec. 7.  NEW SECTION.  714F.7  MISREPRESENTATION OF FACT.
  5  8    A consumer reporting agency may suspend or remove a
  5  9 security freeze upon a material misrepresentation of fact by
  5 10 the consumer.  However, the consumer reporting agency shall
  5 11 send notice to the consumer in writing prior to suspending or
  5 12 removing the security freeze.
  5 13    Sec. 8.  NEW SECTION.  714F.8  EXCEPTIONS.
  5 14    A security freeze shall not apply to the following persons
  5 15 or entities:
  5 16    1.  A person or person's subsidiary, affiliate, agent, or
  5 17 assignee with which the consumer has or prior to assignment
  5 18 had an account, contract, or debtor=creditor relationship for
  5 19 the purposes of reviewing the account or collecting the
  5 20 financial obligation owing for the account, contract, or debt,
  5 21 or extending credit to a consumer with a prior or existing
  5 22 account, contract, or debtor=creditor relationship.
  5 23 "Reviewing the account" includes activities related to account
  5 24 maintenance, monitoring, credit line increases, and account
  5 25 upgrades and enhancements.
  5 26    2.  A subsidiary, affiliate, agent, assignee, or
  5 27 prospective assignee of a person to whom access has been
  5 28 granted under a temporary suspension for purposes of
  5 29 facilitating the extension of credit or another permissible
  5 30 use.
  5 31    3.  A person acting pursuant to a court order, warrant, or
  5 32 subpoena.
  5 33    4.  Child support enforcement officials when investigating
  5 34 a child support case pursuant to Title IV=D or Title XIX of
  5 35 the federal Social Security Act.
  6  1    5.  The department of human services or its agents or
  6  2 assignees acting to investigate fraud under the medical
  6  3 assistance program.
  6  4    6.  The department of revenue or local taxing authorities;
  6  5 or any of their agents or assignees, acting to investigate or
  6  6 collect delinquent taxes or assessments, including interest
  6  7 and penalties and unpaid court orders, or to fulfill any of
  6  8 their other statutory or other responsibilities.
  6  9    7.  A person's use of credit information for prescreening
  6 10 as provided by the federal Fair Credit Reporting Act.
  6 11    8.  A person for the sole purpose of providing a credit
  6 12 file monitoring subscription service to which the consumer has
  6 13 subscribed.
  6 14    9.  A consumer reporting agency for the sole purpose of
  6 15 providing a customer with a copy of the consumer credit report
  6 16 upon the consumer's request.
  6 17    10.  A person's use of a consumer credit report in
  6 18 connection with the business of insurance.
  6 19    Sec. 9.  NEW SECTION.  714F.9  WRITTEN CONFIRMATION.
  6 20    After a security freeze is in effect, a consumer reporting
  6 21 agency may post a name, date of birth, social security number,
  6 22 or address change in a consumer credit report provided written
  6 23 confirmation is sent to the consumer within thirty days of
  6 24 posting the change.  For an address change, written
  6 25 confirmation shall be sent to both the new and former
  6 26 addresses.  Written confirmation is not required to correct
  6 27 spelling and typographical errors.
  6 28    Sec. 10.  NEW SECTION.  714F.10  WAIVER VOID.
  6 29    A waiver by a consumer of the provisions of this chapter is
  6 30 contrary to public policy, and is void and unenforceable.
  6 31    Sec. 11.  NEW SECTION.  714F.11  ENFORCEMENT.
  6 32    A person who violates this chapter violates section 714.16,
  6 33 subsection 2, paragraph "a".  All powers conferred upon the
  6 34 attorney general to accomplish the objectives and carry out
  6 35 the duties prescribed in section 714.16 are also conferred
  7  1 upon the attorney general to enforce this chapter, including
  7  2 but not limited to the power to issue subpoenas, adopt rules,
  7  3 and seek injunctive relief and a monetary award for civil
  7  4 penalties, attorney fees, and costs.  Additionally, the
  7  5 attorney general may seek and recover the greater of five
  7  6 hundred dollars or actual damages for each customer injured by
  7  7 a violation of this chapter.
  7  8
  7  9
  7 10                                                             
  7 11                               JOHN P. KIBBIE
  7 12                               President of the Senate
  7 13
  7 14
  7 15                                                             
  7 16                               PATRICK J. MURPHY
  7 17                               Speaker of the House
  7 18
  7 19    I hereby certify that this bill originated in the Senate and
  7 20 is known as Senate File 2277, Eighty=second General Assembly.
  7 21
  7 22
  7 23                                                             
  7 24                               MICHAEL E. MARSHALL
  7 25                               Secretary of the Senate
  7 26 Approved                , 2008
  7 27
  7 28
  7 29                                
  7 30 CHESTER J. CULVER
  7 31 Governor