Senate File 2054 - Introduced SENATE FILE 2054 BY ZAUN , CHAPMAN , CHELGREN , SINCLAIR , GREENE , D. JOHNSON , DAWSON , SCHNEIDER , CARLIN , EDLER , ROZENBOOM , BREITBACH , COSTELLO , SEGEBART , KAPUCIAN , and GUTH A BILL FOR An Act relating to consumer protection modifying provisions 1 applicable to consumer security freezes and including 2 effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5085XS (3) 87 gh/rn

S.F. 2054 Section 1. Section 714G.2, Code 2018, is amended to read as 1 follows: 2 714G.2 Security freeze. 3 1. A consumer may submit by certified mail to a consumer 4 reporting agency a written request for a security freeze to 5 a consumer reporting agency by first-class mail, telephone, 6 facsimile, secure internet connection, secure electronic mail, 7 or other secure electronic contact method . The consumer must 8 submit proper identification and the applicable fee with the 9 request. Within five three business days after receiving 10 the request, the consumer reporting agency shall commence 11 the security freeze. Within ten three business days after 12 commencing the security freeze, the consumer reporting agency 13 shall send a written confirmation to the consumer of the 14 security freeze, a personal identification number or password, 15 other than the consumer’s social security number, for the 16 consumer to use in authorizing the suspension or removal of 17 the security freeze, including information on how the security 18 freeze may be temporarily suspended. 19 2. a. If a consumer requests a security freeze from a 20 consumer reporting agency that compiles and maintains files 21 on a nationwide basis, the consumer may request to have the 22 security freeze applied to any other consumer reporting agency 23 that compiles and maintains files on consumers on a nationwide 24 basis. 25 b. For purposes of this subsection, “consumer reporting 26 agency that compiles and maintains files on a nationwide basis” 27 means the same as defined in 15 U.S.C. §1681a(p). 28 Sec. 2. Section 714G.3, subsection 1, Code 2018, is amended 29 to read as follows: 30 1. A consumer may request that a security freeze be 31 temporarily suspended to allow the consumer reporting agency to 32 release the consumer credit report for a specific time period. 33 The consumer reporting agency may shall develop procedures 34 to expedite the receipt and processing of requests which may 35 -1- LSB 5085XS (3) 87 gh/rn 1/ 5

S.F. 2054 involve the use of telephones by first-class mail, telephone , 1 facsimile transmissions , the secure internet connection , secure 2 electronic mail, or other secure electronic media contact 3 method . The consumer reporting agency shall comply with 4 the request within three business days after receiving the 5 consumer’s written request, or within fifteen minutes after 6 the consumer’s request is received by the consumer reporting 7 agency through facsimile, the secure internet connection , 8 secure electronic mail, or other secure electronic contact 9 method chosen by the consumer reporting agency , or the use of 10 a telephone, during normal business hours. The consumer’s 11 request shall include all of the following: 12 a. Proper identification. 13 b. The personal identification number or password provided 14 by the consumer reporting agency. 15 c. Explicit instructions of the specific time period 16 designated for suspension of the security freeze. 17 d. Payment of the applicable fee. 18 Sec. 3. Section 714G.4, unnumbered paragraph 1, Code 2018, 19 is amended to read as follows: 20 A security freeze remains in effect until the consumer 21 requests that the security freeze be removed. A consumer 22 reporting agency shall remove a security freeze within three 23 business days after receiving a request for removal that 24 includes proper identification of the consumer, and the 25 personal identification number or password provided by the 26 consumer reporting agency , and payment of the applicable fee . 27 Sec. 4. Section 714G.5, Code 2018, is amended to read as 28 follows: 29 714G.5 Fees prohibited . 30 1. A consumer reporting agency shall not charge any fee to 31 a consumer who is the victim of identity theft for commencing 32 a security freeze, temporary suspension, or removal if with 33 the initial security freeze request, the consumer submits a 34 valid copy of the police report concerning the unlawful use of 35 -2- LSB 5085XS (3) 87 gh/rn 2/ 5

S.F. 2054 identification information by another person. 1 2. A consumer reporting agency may charge a fee not to 2 exceed ten dollars to a consumer who is not the victim of 3 identity theft for each security freeze, removal, or for 4 reissuing a personal identification number or password if the 5 consumer fails to retain the original number. The consumer 6 reporting agency may charge a fee not to exceed twelve dollars 7 for each temporary suspension of a security freeze. 8 A consumer reporting agency shall not charge a fee to a 9 consumer for providing any service pursuant to this chapter, 10 including but not limited to placing, removing, temporarily 11 suspending, or reinstating a security freeze. 12 Sec. 5. Section 714G.8A, subsection 1, paragraph d, Code 13 2018, is amended by striking the paragraph. 14 Sec. 6. Section 714G.8A, subsection 3, paragraph d, Code 15 2018, is amended by striking the paragraph. 16 Sec. 7. Section 714G.8A, subsection 5, Code 2018, is amended 17 to read as follows: 18 5. a. A consumer reporting agency may shall not charge 19 a reasonable fee , not to exceed five dollars, for each the 20 placement , or removal , or reinstatement of a protected consumer 21 security freeze. A consumer reporting agency may not charge 22 any other fee for a service performed pursuant to this section . 23 b. Notwithstanding paragraph “a” , a fee may not be charged 24 by a consumer reporting agency pursuant to either of the 25 following: 26 (1) If the protected consumer’s representative has obtained 27 a police report or affidavit of alleged identity theft under 28 section 715A.8 and submits a copy of the report or affidavit to 29 the consumer reporting agency. 30 (2) A request for the commencement or removal of a protected 31 consumer security freeze is for a protected consumer who is 32 under the age of sixteen years at the time of the request and 33 the consumer reporting agency has a consumer credit report 34 pertaining to the protected consumer. 35 -3- LSB 5085XS (3) 87 gh/rn 3/ 5

S.F. 2054 Sec. 8. EFFECTIVE DATE. This Act, being deemed of immediate 1 importance, takes effect upon enactment. 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 5 This bill relates to consumer security freezes. 6 Current law permits a consumer to submit a request for a 7 security freeze via certified mail. The bill expands the 8 methods permitted for a consumer to submit a request for 9 a security freeze to allow such requests to be submitted 10 via first-class mail, telephone, facsimile, secure internet 11 connection, secure electronic mail, or other secure electronic 12 contact method. 13 The bill reduces the number of days by which a consumer 14 reporting agency must commence a security freeze after 15 receiving a request from five to three business days. The bill 16 also reduces the number of days by which a consumer reporting 17 agency must send written confirmation to a consumer after 18 commencing a security freeze from ten to three business days. 19 The bill provides that if a consumer requests a security 20 freeze from a consumer reporting agency that compiles and 21 maintains files on a nationwide basis, as defined in the bill, 22 the consumer may request to have the security freeze applied to 23 any other similar consumer reporting agency. 24 The bill requires consumer reporting agencies to develop 25 procedures to expedite the receipt and processing of security 26 freeze suspension requests received via the same methods 27 permitted for consumers to submit such requests. The bill 28 requires a consumer reporting agency to commence a security 29 freeze suspension within 15 minutes after receiving a request 30 through telephone, facsimile, secure internet connection, 31 secure electronic mail, or other secure electronic contact 32 method. 33 The bill prohibits consumer reporting agencies from charging 34 fees to consumers for providing any service pursuant to Code 35 -4- LSB 5085XS (3) 87 gh/rn 4/ 5

S.F. 2054 chapter 714G, including but not limited to placing, removing, 1 temporarily suspending, or reinstating a security freeze. The 2 bill also prohibits consumer reporting agencies from charging 3 fees for placing or removing a protected consumer security 4 freeze pursuant to Code section 714G.8A. The bill removes 5 several references to payment of fees in Code chapter 714G. 6 The bill takes effect upon enactment. 7 -5- LSB 5085XS (3) 87 gh/rn 5/ 5