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SCS CSHB 65(L&C) Detail
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SCS CSHB 65(L&C): "An Act relating to breaches of security involving personal information, credit report and credit score security freezes, protection of social security numbers, care of records, disposal of records, identity theft, credit cards, and debit cards, and to the jurisdiction of the office of administrative hearings; amending Rules 60 and 82, Alaska Rules of Civil Procedure; and providing for an effective date."

00 SENATE CS FOR CS FOR HOUSE BILL NO. 65(L&C) 01 "An Act relating to breaches of security involving personal information, credit report 02 and credit score security freezes, protection of social security numbers, care of records, 03 disposal of records, identity theft, credit cards, and debit cards, and to the jurisdiction of 04 the office of administrative hearings; amending Rules 60 and 82, Alaska Rules of Civil 05 Procedure; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 40.21.110 is amended to read: 08 Sec. 40.21.110. Care of records. Except for public records lawfully in the 09 possession of a person other than the state, public records of existing or defunct 10 agencies of the state, territorial, and Russian governments in Alaska are the property 11 of the state and shall be created, maintained, preserved, stored, transferred, destroyed 12 or disposed of, and otherwise managed in accordance with the provisions of this 13 chapter and AS 45.48.500 - 45.48.530. Records shall be delivered by outgoing 14 officials and employees to their successors, and may not be removed, destroyed or

01 disposed of, except as provided in this chapter and AS 45.48.500 - 45.48.530. 02 * Sec. 2. AS 44.64.030(a) is amended by adding a new paragraph to read: 03 (40) AS 45.48.080(c) (breach of security involving personal 04 information). 05 * Sec. 3. AS 45 is amended by adding a new chapter to read: 06 Chapter 48. Personal Information Protection Act. 07 Article 1. Breach of Security Involving Personal Information. 08 Sec. 45.48.010. Disclosure of breach of security. (a) If a covered person owns 09 or licenses personal information in any form that includes personal information on a 10 state resident, and a breach of the security of the information system that contains 11 personal information occurs, the covered person shall, after discovering or being 12 notified of the breach, disclose the breach to each state resident whose personal 13 information was subject to the breach. 14 (b) An information collector shall make the disclosure required by (a) of this 15 section in the most expeditious time possible and without unreasonable delay, except 16 as provided in AS 45.48.020 and as necessary to determine the scope of the breach and 17 restore the reasonable integrity of the information system. 18 (c) Notwithstanding (a) of this section, disclosure is not required if, after an 19 appropriate investigation or after consultation with relevant federal, state, or local 20 agencies responsible for law enforcement, the covered person determines that there is 21 not a reasonable likelihood that harm to the consumers whose personal information 22 has been acquired has resulted or will result from the breach. The determination shall 23 be documented in writing and the documentation shall be maintained for five years. 24 Sec. 45.48.020. Allowable delay in notification. An information collector 25 may delay disclosing the breach under AS 45.48.010 if an appropriate law 26 enforcement agency determines that disclosing the breach will interfere with a 27 criminal investigation. However, the information collector shall disclose the breach to 28 the state resident in the most expeditious time possible and without unreasonable delay 29 after the law enforcement agency informs the information collector in writing that 30 disclosure of the breach will no longer interfere with the investigation. 31 Sec. 45.48.030. Methods of notice. An information collector shall make the

01 disclosure required by AS 45.48.010 02 (1) by a written document sent to the most recent address the 03 information collector has for the state resident; 04 (2) by electronic means if the information collector's primary method 05 of communication with the state resident is by electronic means, or if making the 06 disclosure by the electronic means is consistent with the provisions regarding 07 electronic records and signatures required for notices legally required to be in writing 08 under 15 U.S.C. 7001 et seq. (Electronic Signatures in Global and National Commerce 09 Act); or 10 (3) if the information collector demonstrates that the cost of providing 11 notice would exceed $150,000, that the affected class of state residents to be notified 12 exceeds 300,000, or that the information collector does not have sufficient contact 13 information to provide notice, by 14 (A) electronic mail if the information collector has an 15 electronic mail address for the state resident; 16 (B) conspicuously posting the disclosure on the Internet 17 website of the information collector if the information collector maintains an 18 Internet site; and 19 (C) providing a notice to major statewide media. 20 Sec. 45.48.040. Notification of certain other agencies. (a) If an information 21 collector is required by AS 45.48.010 to notify more than 1,000 state residents of a 22 breach, the information collector shall also notify without unreasonable delay all 23 consumer credit reporting agencies that compile and maintain files on consumers on a 24 nationwide basis and provide the agencies with the timing, distribution, and content of 25 the notices. 26 (b) This section may not be construed to require the information collector to 27 provide the consumer reporting agencies identified under (a) of this section with the 28 names or other personal information of the state residents whose personal information 29 was subject to the breach. 30 (c) This section does not apply to an information collector who is subject to 31 the Gramm-Leach-Bliley Financial Modernization Act.

01 (d) In this section, "consumer reporting agency that compiles and maintains 02 files on consumers on a nationwide basis" has the meaning given in 15 U.S.C. 03 1681a(p). 04 Sec. 45.48.050. Exception for employees and agents. In AS 45.48.010 - 05 45.48.090, the good faith acquisition of personal information by an employee or agent 06 of an information collector for a legitimate purpose of the information collector is not 07 a breach of the security of the information system if the employee or agent does not 08 use the personal information for a purpose unrelated to a legitimate purpose of the 09 information collector and does not make further unauthorized disclosure of the 10 personal information. 11 Sec. 45.48.060. Waivers. A waiver of AS 45.48.010 - 45.48.090 is void and 12 unenforceable. 13 Sec. 45.48.070. Treatment of certain breaches. (a) If a breach of the security 14 of the information system containing personal information on a state resident that is 15 maintained by an information recipient occurs, the information recipient is not 16 required to comply with AS 45.48.010 - 45.48.030. However, immediately after the 17 information recipient discovers the breach, the information recipient shall notify the 18 information distributor who owns the personal information or who licensed the use of 19 the personal information to the information recipient about the breach and cooperate 20 with the information distributor as necessary to allow the information distributor to 21 comply with (b) of this section. In this subsection, "cooperate" means sharing with the 22 information distributor information relevant to the breach, except for confidential 23 business information or trade secrets. 24 (b) If an information recipient notifies an information distributor of a breach 25 under (a) of this section, the information distributor shall comply with AS 45.48.010 - 26 45.48.030 as if the breach occurred to the information system maintained by the 27 information distributor. 28 Sec. 45.48.080. Violations. (a) If an information collector who is a 29 governmental agency violates AS 45.48.010 - 45.48.090 with regard to the personal 30 information of a state resident, the information collector 31 (1) is liable to the state for a civil penalty of up to $500 for each state

01 resident who was not notified under AS 45.48.010 - 45.48.090, but the total civil 02 penalty may not exceed $50,000; and 03 (2) may be enjoined from further violations. 04 (b) If an information collector who is not a governmental agency violates 05 AS 45.48.010 - 45.48.090 with regard to the personal information of a state resident, 06 the violation is an unfair or deceptive act or practice under AS 45.50.471 - 45.50.561. 07 However, 08 (1) the information collector is not subject to the civil penalties 09 imposed under AS 45.50.551 but is liable to the state for a civil penalty of up to $500 10 for each state resident who was not notified under AS 45.48.010 - 45.48.090, except 11 that the total civil penalty may not exceed $50,000; and 12 (2) damages that may be awarded against the information collector 13 under 14 (A) AS 45.50.531 are limited to actual economic damages that 15 do not exceed $500; and 16 (B) AS 45.50.537 are limited to actual economic damages. 17 (c) The Department of Administration may enforce (a) of this section against a 18 governmental agency. The procedure for review of an order or action of the 19 department under this subsection is the same as the procedure provided by AS 44.62 20 (Administrative Procedure Act), except that the office of administrative hearings 21 (AS 44.64.010) shall conduct the hearings in contested cases and the decision may be 22 appealed under AS 44.64.030(c). 23 Sec. 45.48.090. Definitions. In AS 45.48.010 - 45.48.090, 24 (1) "breach of the security" means unauthorized acquisition, or 25 reasonable belief of unauthorized acquisition, of personal information that 26 compromises the security, confidentiality, or integrity of the personal information 27 maintained by the information collector; in this paragraph, "acquisition" includes 28 acquisition by 29 (A) photocopying, facsimile, or other paper-based method; 30 (B) a device, including a computer, that can read, write, or 31 store information that is represented in numerical form; or

01 (C) a method not identified by (A) or (B) of this paragraph; 02 (2) "covered person" means a 03 (A) person doing business; 04 (B) a governmental agency; or 05 (C) a person with more than 10 employees; 06 (3) "governmental agency" means a state or local governmental 07 agency, except for an agency of the judicial branch; 08 (4) "information collector" means a covered person who owns or 09 licenses personal information in any form if the personal information includes 10 personal information on a state resident; 11 (5) "information distributor" means a person who is an information 12 collector and who owns or licenses personal information to an information recipient; 13 (6) "information recipient" means a person who is an information 14 collector but who does not own or have the right to license to another information 15 collector the personal information received by the person from an information 16 distributor; 17 (7) "personal information" means information in any form on an 18 individual that is not encrypted or redacted, or is encrypted and the encryption key has 19 been accessed or acquired, and that consists of a combination of 20 (A) an individual's name; in this subparagraph, "individual's 21 name" means a combination of an individual's 22 (i) first name or first initial; and 23 (ii) last name; and 24 (B) one or more of the following information elements: 25 (i) the individual's social security number; 26 (ii) the individual's driver's license number or state 27 identification card number; 28 (iii) except as provided in (iv) of this subparagraph, the 29 individual's account number, credit card number, or debit card number; 30 (iv) if an account can only be accessed with a personal 31 code, the number in (iii) of this subparagraph and the personal code; in

01 this sub-subparagraph, "personal code" means a security code, an 02 access code, a personal identification number, or a password; 03 (v) passwords, personal identification numbers, or other 04 access codes for financial accounts. 05 Article 2. Credit Report and Credit Score Security Freeze. 06 Sec. 45.48.100. Security freeze authorized. A consumer may prohibit a 07 consumer credit reporting agency from releasing the consumer's credit report or credit 08 score without the express authorization of the consumer by placing a security freeze 09 on the consumer's credit report. 10 Sec. 45.48.110. Placement of security freeze. (a) To place a security freeze, a 11 consumer shall make the request to the consumer credit reporting agency 12 (1) by mail to the address designated by the consumer credit reporting 13 agency to receive security freeze requests; or 14 (2) as allowed by (b) of this section. 15 (b) A consumer may make a request under (a) of this section by telephone or 16 by fax, the Internet, or other electronic media if the consumer credit reporting agency 17 has developed procedures for using the telephone or an electronic medium to receive 18 and process the request in an expedited manner. 19 (c) A consumer credit reporting agency shall place a security freeze within 20 five business days after receiving a request under (a) or (b) of this section and proper 21 identification from the consumer. 22 Sec. 45.48.120. Confirmation of security freeze. (a) Within 10 business days 23 after a consumer makes the request under AS 45.48.110, a consumer credit reporting 24 agency shall send a written confirmation of the placement of the security freeze to the 25 consumer. The confirmation must also inform the consumer that the consumer credit 26 reporting agency may charge, as allowed by AS 45.48.160, a fee for third-party access 27 during the security freeze. 28 (b) At the same time that the consumer credit reporting agency sends a 29 confirmation under (a) of this section, the consumer credit reporting agency shall 30 provide the consumer with a unique personal identification number, password, or 31 similar device to be used by the consumer when the consumer authorizes the release of

01 the consumer's credit report or credit score under AS 45.48.130. 02 Sec. 45.48.130. Access and actions during security freeze. (a) While a 03 security freeze is in place, a consumer credit reporting agency shall allow a third party 04 access to a consumer's credit report or credit score if the consumer requests that the 05 consumer credit reporting agency allow the access. 06 (b) To make a request under (a) of this section, the consumer shall contact the 07 consumer credit reporting agency by mail at the address designated by the consumer 08 credit reporting agency to receive security freeze requests or as allowed by (c) of this 09 section, authorize the consumer credit reporting agency to allow the access, and 10 provide the consumer credit reporting agency with 11 (1) proper identification to verify the consumer's identity; 12 (2) the unique personal identification number, password, or similar 13 device provided under AS 45.48.120(b); and 14 (3) the proper information necessary to identify the third party to 15 whom the consumer credit reporting agency may allow the access or the time period 16 during which the consumer credit reporting agency may allow the access to third 17 parties who request the access. 18 (c) In addition to making the request by mail, a consumer may make a request 19 under (a) of this section by telephone or by fax, the Internet, or other electronic media 20 if the consumer credit reporting agency has developed procedures for using the 21 telephone or an electronic medium to receive and process the request in an expedited 22 manner. 23 (d) A consumer credit reporting agency that receives a request from a 24 consumer under (b) or (c) of this section shall comply with the request within 15 25 minutes after receiving the request by telephone or by an electronic medium or within 26 three business days after receiving the request by mail. 27 (e) If a security freeze is in place, a consumer credit reporting agency may not 28 release the credit report or credit score to a third party without the prior express 29 authorization of the consumer. 30 (f) If a security freeze is in place on a consumer's credit report and credit score 31 and if a third party applies to a consumer credit reporting agency to provide the third

01 party with access to the consumer's credit report or credit score, the consumer credit 02 reporting agency and, except as provided for insurers under (g) of this section, the 03 third party may treat the third party's application as incomplete unless the consumer 04 authorizes the access under (a) of this section. 05 (g) If an insurer requests access to a consumer's credit report and credit score 06 on which a security freeze is in place, unless the consumer authorizes access under (a) 07 of this section, the insurer may, notwithstanding AS 21.36.460, 08 (1) treat the consumer's application as incomplete; 09 (2) decline the consumer's application if the consumer does not lift the 10 security freeze for the insurer after a request by the insurer or the insurer's agent; 11 (3) treat the consumer as if the consumer has a neutral credit rating; 12 (4) exclude the use of credit information as a factor and use only 13 underwriting criteria; or 14 (5) treat the consumer in a manner that is otherwise approved by the 15 division of insurance. 16 (h) If a security freeze is in place, a consumer credit reporting agency may not 17 change the consumer's official information in the consumer's credit report and credit 18 score without sending a written statement of the change to the consumer within 30 19 days after the change is made. A consumer credit reporting agency is not required to 20 send a written statement if the consumer credit reporting agency makes a technical 21 change in the consumer's official information. If a consumer credit reporting agency 22 makes a change, other than a technical change, in a consumer's address, the consumer 23 credit reporting agency shall send the written statement to the consumer at both the 24 new address and the former address. In this subsection, 25 (1) "official information" means name, birth date, social security 26 number, and address; 27 (2) "technical change" means changing spelling, transposing numbers 28 or letters, abbreviating a word, or spelling out an abbreviation. 29 (i) This section is not intended to prevent a consumer credit reporting agency 30 from advising a third party that requests access to a consumer's credit report or credit 31 score that a security freeze is in effect.

01 (j) The procedures used by a consumer credit reporting agency for 02 implementing the provisions of this section may include the use of telephone, 03 facsimile, or electronic means if making the disclosure by the electronic means is 04 consistent with the provisions regarding electronic records and signatures required for 05 notices legally required to be in writing under 15 U.S.C. 7001 et seq. (Electronic 06 Signatures in Global and National Commerce Act). 07 Sec. 45.48.140. Removal of security freeze. (a) Except as provided by 08 AS 45.48.130, a consumer credit reporting agency may not remove a security freeze 09 unless 10 (1) the consumer requests that the consumer credit reporting agency 11 remove the security freeze under (b) of this section; or 12 (2) the consumer made a material misrepresentation of fact to the 13 consumer credit reporting agency when the consumer requested the security freeze 14 under AS 45.48.110; if a consumer credit reporting agency intends to remove a 15 security freeze on a consumer's credit report under this paragraph, the consumer credit 16 reporting agency shall notify the consumer in writing before removing the security 17 freeze. 18 (b) A consumer credit reporting agency shall remove a security freeze within 19 three days after receiving a request for removal from the consumer who requested the 20 security freeze. 21 (c) To make a request under (b) of this section, the consumer shall contact the 22 consumer credit reporting agency by mail or as allowed by (d) of this section, 23 authorize the consumer credit reporting agency to remove the security freeze, and 24 provide the consumer credit reporting agency with 25 (1) proper identification to verify the consumer's identity; and 26 (2) the unique personal identification number, password, or similar 27 device provided under AS 45.48.120(b). 28 (d) In addition to mail, a consumer may make a request under (b) of this 29 section by telephone or by fax, the Internet, or other electronic media if the consumer 30 credit reporting agency has developed procedures for using the telephone or an 31 electronic medium to receive and process the request in an expedited manner.

01 Sec. 45.48.150. Prohibition. When dealing with a third party, a consumer 02 credit reporting agency may not suggest, state, or imply that a consumer's security 03 freeze reflects a negative credit score, history, report, or rating. 04 Sec. 45.48.160. Charges. (a) Except as provided by (b), (c), or (d) of this 05 section, a consumer credit reporting agency may not charge a consumer to place or 06 remove a security freeze, to provide access under AS 45.48.130, or to take any other 07 action, including the issuance of a personal identification number, password, or similar 08 device under AS 45.48.120, that is related to the placement of, removal of, or allowing 09 access to a credit report or credit score on which a security freeze has been placed. 10 (b) A consumer credit reporting agency may charge a consumer $5 for placing 11 a security freeze. 12 (c) If a consumer makes more than two access requests during a calendar year, 13 a consumer credit reporting agency may charge the consumer $2 for each additional 14 access request made by the consumer during that calendar year. In this subsection, 15 "access request" means a request made by the consumer under AS 45.48.130 to allow 16 third-party access to the consumer's credit report or credit score on which a security 17 freeze has been placed. 18 (d) If a consumer fails to retain a personal identification number, password, or 19 similar device issued under AS 45.48.120, a consumer credit reporting agency may 20 charge the consumer up to $5 for each time after the first time that the consumer credit 21 reporting agency issues the consumer another personal identification number, 22 password, or similar device because the consumer failed to retain the personal 23 identification number, password, or similar device. 24 (e) A consumer credit reporting agency may not charge a consumer a fee 25 under (b) or (c) of this section if the consumer has been a victim of identity theft and 26 provides the consumer credit reporting agency with a complaint filed by the consumer 27 with a law enforcement agency. 28 Sec. 45.48.170. Notice of rights. When a consumer credit reporting agency is 29 required to give a consumer a summary of rights under 15 U.S.C. 1681g of the Fair 30 Credit Reporting Act, a consumer credit reporting agency shall also give the consumer 31 the following notice:

01 Consumers Have the Right to Obtain a Security Freeze 02 You may obtain a security freeze on your credit report and 03 credit score for $5 to protect your privacy and ensure that credit is not 04 granted in your name without your knowledge. You may not have to 05 pay the $5 charge if you are a victim of identity theft. You have a right 06 to place a "security freeze" on your credit report and credit score under 07 state law (AS 45.48.100 - 45.48.290). 08 The security freeze will prohibit a consumer credit reporting 09 agency from releasing your credit score and any information in your 10 credit report without your express authorization or approval. 11 The security freeze is designed to prevent credit, loans, and 12 other services from being approved in your name without your consent. 13 However, you should be aware that using a security freeze to take 14 control over who gets access to the personal and financial information 15 in your credit report and credit score may delay, interfere with, or 16 prohibit the timely approval of any subsequent request or application 17 you make regarding a new loan, credit, a mortgage, a governmental 18 service, a governmental payment, a cellular telephone, a utility, an 19 Internet credit card application, an extension of credit at point of sale, 20 and other items and services. 21 When you place a security freeze on your credit report and 22 credit score, within 10 business days you will be provided a personal 23 identification number, password, or similar device to use if you choose 24 to remove the freeze on your credit report and credit score or to 25 temporarily authorize the release of your credit report and credit score 26 to a specific third party or specific third parties or for a specific period 27 of time after the freeze is in place. To provide that authorization, you 28 must contact the consumer credit reporting agency and provide all of 29 the following: 30 (1) proper identification to verify your identity; 31 (2) the personal identification number, password, or

01 similar device provided by the consumer credit reporting agency; 02 (3) proper information necessary to identify the third 03 party or third parties who are authorized to receive the credit report and 04 credit score or the specific period of time for which the credit report 05 and credit score are to be available to third parties. 06 A consumer credit reporting agency that receives your request 07 to temporarily lift a freeze on a credit report and credit score is required 08 to comply with the request within 15 minutes after receiving your 09 request if you make the request by telephone, or an electronic method if 10 the agency provides an electronic method, or within three business days 11 after receiving your request if you make the request by mail. After the 12 first two requests in a year, the consumer credit reporting agency may 13 charge you $2 to temporarily lift the freeze. 14 A security freeze does not apply to circumstances where you 15 have an existing account relationship and a copy of your credit report 16 and credit score are requested by your existing creditor or its agents or 17 affiliates for certain types of account review, collection, fraud control, 18 or similar activities. 19 If you are actively seeking credit, you should understand that 20 the procedures involved in lifting a security freeze may slow your own 21 applications for credit. You should plan ahead and lift a freeze, either 22 completely if you are shopping around, or specifically for a certain 23 creditor, days before applying for new credit. 24 You have a right to bring a civil action against someone who 25 violates your rights under these laws on security freezes. The action can 26 be brought against a consumer credit reporting agency. 27 Sec. 45.48.180. Notification after violation. If a consumer credit reporting 28 agency violates a security freeze by releasing a consumer's credit report or credit 29 score, the consumer credit reporting agency shall notify the consumer within five 30 business days after discovering or being notified of the release, and the information in 31 the notice must include an identification of the information released and of the third

01 party who received the information. 02 Sec. 45.48.190. Resellers. A consumer credit reporting agency that acts as a 03 reseller of consumer information shall honor a security freeze placed on a consumer's 04 credit report and credit score by another consumer credit reporting agency. 05 Sec. 45.48.200. Violations and penalties. (a) A consumer who suffers 06 damages as a result of a person's violation of AS 45.48.100 - 45.48.290 may bring an 07 action in court against the person and recover, in the case of a violation where the 08 person acted 09 (1) negligently, actual economic damages, court costs allowed by the 10 rules of court, and full reasonable attorney fees; 11 (2) knowingly, 12 (A) damages as described in (1) of this subsection; 13 (B) punitive damages that are not less than $100 nor more than 14 $5,000 for each violation as the court determines to be appropriate; and 15 (C) other relief that the court determines to be appropriate. 16 (b) A consumer may bring an action in court against a person for a violation or 17 threatened violation of AS 45.48.100 - 45.48.290 for injunctive relief, whether or 18 not the consumer seeks another remedy under this section. 19 (c) Notwithstanding (a)(2) of this section, a person who knowingly violates 20 AS 45.48.100 - 45.48.290 is liable in a class action for an amount that the court 21 allows. When determining the amount of an award in a class action under this 22 subsection, the court shall consider, among the relevant factors, the amount of any 23 actual damages awarded, the frequency of the violations, the resources of the violator, 24 and the number of consumers adversely affected. 25 (d) In this section, "knowingly" has the meaning given in AS 11.81.900. 26 Sec. 45.48.210. Exemptions. (a) The provisions of AS 45.48.100 - 45.48.290 27 do not apply to the use of a credit report by 28 (1) a person, the person's subsidiary, affiliate, or agent, or the person's 29 assignee with whom a consumer has or, before the assignment, had an account, 30 contract, or debtor-creditor relationship if the purpose of the use is to review the 31 consumer's account or to collect a financial obligation owing on the account, contract,

01 or debt; 02 (2) a subsidiary, an affiliate, an agent, an assignee, or a prospective 03 assignee of a person to whom access has been granted under AS 45.48.130 if the 04 purpose of the use is to facilitate the extension of credit or another permissible use; 05 (3) a person acting under a court order, warrant, or subpoena; 06 (4) an agency of a state or municipality that administers a program for 07 establishing and enforcing child support obligations; 08 (5) the Department of Health and Social Services, its agents, or its 09 assigns when investigating fraud; 10 (6) the Department of Revenue, its agents, or its assigns when 11 investigating or collecting delinquent taxes or unpaid court orders or when 12 implementing its other statutory responsibilities; 13 (7) a person if the purpose of the use is prescreening allowed under 15 14 U.S.C. 1681b(c) of the Fair Credit Reporting Act; 15 (8) a person administering a credit file monitoring subscription service 16 to which the consumer has subscribed; 17 (9) a person providing a consumer with a copy of the consumer's credit 18 report or credit score at the consumer's request; or 19 (10) a person if the data base or file of the consumer credit reporting 20 agency consists entirely of information concerning and used solely for one or more of 21 the following purposes: 22 (A) criminal record information; 23 (B) personal loss history information; 24 (C) fraud prevention or detection; 25 (D) tenant screening; or 26 (E) employment screening. 27 (b) Except as provided by AS 45.48.190, the provisions of AS 45.48.100 - 28 45.48.290 do not apply to a person when acting only as a reseller of consumer 29 information. 30 Sec. 45.48.290. Definitions. In AS 45.48.100 - 45.48.290, 31 (1) "account review" means activities related to account maintenance,

01 account monitoring, credit line increases, and account upgrades and enhancements; 02 (2) "consumer" means an individual who is the subject of a credit 03 report or credit score; 04 (3) "consumer credit reporting agency" has the meaning given in 05 AS 45.48.990, but does not include a person who issues reports 06 (A) on incidents of fraud or authorizations for the purpose of 07 approving or processing negotiable instruments, electronic funds transfers, or 08 similar methods of payments; or 09 (B) regarding account closures because of fraud, substantial 10 overdrafts, automated teller machine abuse, or similar negative information 11 regarding a consumer to inquiring banks or other financial institutions for use 12 only in reviewing consumer requests for deposit accounts at the inquiring 13 banks or financial institutions; 14 (4) "reseller of consumer information" means a person who assembles 15 and merges information contained in the data bases of consumer credit reporting 16 agencies and does not maintain a permanent data base of consumer information from 17 which new consumer credit reports are produced; 18 (5) "security freeze" means a prohibition against a consumer credit 19 reporting agency from releasing a consumer's credit report or credit score without the 20 express authorization of the consumer; 21 (6) "third party" means a person who is not 22 (A) the consumer who is the subject of the consumer's credit 23 report or credit score; or 24 (B) the consumer credit reporting agency that is holding the 25 consumer's credit report or credit score. 26 Article 3. Protection of Social Security Number. 27 Sec. 45.48.400. Use of social security number. (a) A person may not 28 (1) intentionally communicate or otherwise make available to the 29 general public an individual's social security number; 30 (2) print an individual's social security number on a card required for 31 the individual to access products or services provided by the person;

01 (3) require an individual to transmit the individual's social security 02 number over the Internet unless the Internet connection is secure or the social security 03 number is encrypted; 04 (4) require an individual to use the individual's social security number 05 to access an Internet site unless a password, a unique personal identification number, 06 or another authentication device is also required to access the site; or 07 (5) print an individual's social security number on material that is 08 mailed to the individual unless 09 (A) local, state, or federal law, including a regulation adopted 10 under AS 45.48.470, expressly authorizes placement of the social security 11 number on the material; or 12 (B) the social security number is included on an application or 13 other form, including a document sent as a part of an application process or an 14 enrollment process, sent by mail to establish, amend, or terminate an account, a 15 contract, or a policy, or to confirm the accuracy of the social security number; 16 however, a social security number allowed to be mailed under this 17 subparagraph may not be printed, in whole or in part, on a postcard or other 18 mailer that does not require an envelope, or in a manner that makes the social 19 security number visible on the envelope or without the envelope's being 20 opened. 21 (b) The prohibitions in (a) of this section do not apply if the person is 22 engaging in the business of government and 23 (1) is authorized by law to communicate or otherwise make available 24 to the general public the individual's social security number; or 25 (2) the communicating or otherwise making available of the 26 individual's social security number is required for the performance of the person's 27 duties or responsibilities as provided by law. 28 Sec. 45.48.410. Request and collection. (a) A person who does business in the 29 state, including the business of government, may not request or collect from an 30 individual the individual's social security number. This subsection does not prohibit a 31 person from asking for another form of identification from the individual.

01 (b) The prohibition in (a) of this section does not apply 02 (1) if the person is expressly authorized by local, state, or federal law, 03 including a regulation adopted under AS 45.48.470, to demand proof of the 04 individual's social security number, to request or collect the individual's social security 05 number, or to submit the individual's social security number to the local, state, or 06 federal government; 07 (2) if the person is engaging in the business of government and 08 (A) is authorized by law to request or collect the individual's 09 social security number; or 10 (B) the request or collection of the individual's social security 11 number is required for the performance of the person's duties or 12 responsibilities as provided by law; 13 (3) to a person regulated by the Gramm-Leach-Bliley Financial 14 Modernization Act for a purpose authorized by the Gramm-Leach-Bliley Financial 15 Modernization Act; 16 (4) to a person regulated by the Fair Credit Reporting Act for a 17 purpose authorized by the Fair Credit Reporting Act; 18 (5) if the request or collection is for a background check on the 19 individual, debt collection, fraud prevention, medical treatment, law enforcement or 20 other government purposes, or the individual's employment, including employment 21 benefits; or 22 (6) if the request or collection does not have independent economic 23 value, is incidental to a larger transaction or a larger anticipated transaction, and is 24 necessary to verify the identity of the individual. 25 Sec. 45.48.420. Sale, lease, loan, trade, or rental. (a) A person may not sell, 26 lease, loan, trade, or rent an individual's social security number to a third party. 27 (b) The prohibition in (a) of this section does not apply if the sale, lease, loan, 28 trade, or rental is 29 (1) expressly authorized by local, state, or federal law, including a 30 regulation adopted under AS 45.48.470; 31 (2) by a person regulated by the Gramm-Leach-Bliley Financial

01 Modernization Act for a purpose authorized by the Gramm-Leach-Bliley Financial 02 Modernization Act; 03 (3) by a person regulated by the Fair Credit Reporting Act for a 04 purpose authorized by the Fair Credit Reporting Act; 05 (4) part of a report prepared by a consumer credit reporting agency in 06 response to a request by a person and the person submits the social security number as 07 part of the request to the consumer credit reporting agency for the preparation of the 08 report. 09 (c) Nothing in this section prevents a business from transferring social security 10 numbers to another person if the transfer is part of the sale or other transfer of the 11 business to the other person. 12 (d) A transfer of an individual's social security number for the sole purpose of 13 identifying a person about whom a report or database check is ordered, received, or 14 provided is not a sale, lease, loan, trade, or rental of a social security number under 15 this section. 16 (e) A person who knowingly violates (a) of this section is guilty of a class A 17 misdemeanor. In this subsection, "knowingly" has the meaning given in AS 11.81.900. 18 Sec. 45.48.430. Disclosure. (a) A person doing business, including the 19 business of government, may not disclose an individual's social security number to a 20 third party. 21 (b) The prohibition in (a) of this section does not apply if 22 (1) the disclosure is expressly authorized by local, state, or federal law, 23 including a regulation adopted under AS 45.48.470; 24 (2) the person is engaging in the business of government and 25 (A) is authorized by law to disclose the individual's social 26 security number; or 27 (B) the disclosure of the individual's social security number is 28 required for the performance of the person's duties or responsibilities as 29 provided by law; 30 (3) the third party is a person regulated by the Gramm-Leach-Bliley 31 Financial Modernization Act, and the disclosure is for a purpose authorized by the

01 Gramm-Leach-Bliley Financial Modernization Act or to facilitate a transaction of the 02 individual; 03 (4) the third party is regulated by the Fair Credit Reporting Act and the 04 disclosure is for a purpose authorized by the Fair Credit Reporting Act; 05 (5) the disclosure is part of a report prepared by a consumer credit 06 reporting agency in response to a request by a person and the person submits the social 07 security number as part of the request to the consumer credit reporting agency for the 08 preparation of the report; or 09 (6) the disclosure is for a background check on the individual, debt 10 collection, identity verification, fraud prevention, medical treatment, law enforcement 11 or other government purposes, or the individual's employment, including employment 12 benefits. 13 Sec. 45.48.440. Interagency disclosure. Notwithstanding the other provisions 14 of AS 45.48.400 - 45.48.480, a state or local governmental agency may disclose an 15 individual's social security number to another state or local governmental agency or to 16 an agency of the federal government if the disclosure is required in order for the 17 agency to carry out the agency's duties and responsibilities. 18 Sec. 45.48.450. Exception for employees, agents, and independent 19 contractors. (a) Notwithstanding the other provisions of AS 45.48.400 - 45.48.480, a 20 person may disclose an individual's social security number to an employee or agent of 21 the person for a legitimate purpose established by and as directed by the person, but 22 the employee or agent may not use the social security number for another purpose or 23 make an unauthorized disclosure of the individual's personal information. 24 (b) Notwithstanding the other provisions of AS 45.48.400 - 45.48.480, and 25 except as provided for an agent under (a) of this section, a person may disclose an 26 individual's social security number to an independent contractor of the person to 27 facilitate the purpose or transaction for which the individual initially provided the 28 social security number to the person, but the independent contractor may not use the 29 social security number for another purpose or make an unauthorized disclosure of the 30 individual's personal information. 31 Sec. 45.48.460. Employment-related exception. The provisions of

01 AS 45.48.400 - 45.48.480 may not be construed to restrict a person's use or exchange 02 of an individual's social security number 03 (1) in the course of the administration of a claim, benefit, or procedure 04 related to the individual's employment by the person, including the individual's 05 termination from employment, retirement from employment, and injury suffered 06 during the course of employment; or 07 (2) to check on an unemployment insurance claim of the individual. 08 Sec. 45.48.470. Agency regulations. If regulations are necessary in order for a 09 state agency to carry out the state agency's duties and responsibilities, a state agency 10 may adopt regulations under AS 44.62 (Administrative Procedure Act) to establish 11 when the state agency or a person regulated by the state agency may 12 (1) print an individual's social security number on material that is 13 mailed to the individual; 14 (2) demand proof from an individual of the individual's social security 15 number, collect from an individual the individual's social security number, or submit 16 an individual's social security number to a local, state, or federal agency; 17 (3) ask an individual to provide the state agency with the individual's 18 social security number; 19 (4) disclose an individual's social security number to a third party; 20 (5) sell, lease, loan, trade, or rent an individual's social security number 21 to a third party. 22 Sec. 45.48.480. Penalties. (a) A person who knowingly violates AS 45.48.400 23 - 45.48.430 is liable to the state for a civil penalty not to exceed $3,000. 24 (b) An individual may bring a civil action in court against a person who 25 knowingly violates AS 45.48.400 - 45.48.430 and may recover actual economic 26 damages, court costs allowed by the rules of court, and full reasonable attorney fees. 27 (c) In this section, "knowingly" has the meaning given in AS 11.81.900. 28 Article 4. Disposal of Records. 29 Sec. 45.48.500. Disposal of records. (a) When disposing of records that 30 contain personal information, a business and a governmental agency shall take all 31 reasonable measures necessary to protect against unauthorized access to or use of the

01 records. 02 (b) Notwithstanding (a) of this section, if a business or governmental agency 03 has otherwise complied with the provisions of AS 45.48.500 - 45.48.590 in the 04 selection of a third party engaged in the business of record destruction, the business or 05 governmental agency is not liable for the disposal of records under AS 45.48.500 - 06 45.48.590 after the business or governmental agency has relinquished control of the 07 records to the third party for the destruction of the records. 08 (c) A business or governmental agency is not liable for the disposal of records 09 under AS 45.48.500 - 45.48.590 after the business or governmental agency has 10 relinquished control of the records to the individual to whom the records pertain. 11 Sec. 45.48.510. Measures to protect access. The measures that may be taken 12 to comply with AS 45.48.500 include 13 (1) implementing and monitoring compliance with policies and 14 procedures that require the burning, pulverizing, or shredding of paper documents 15 containing personal information so that the personal information cannot practicably be 16 read or reconstructed; 17 (2) implementing and monitoring compliance with policies and 18 procedures that require the destruction or erasure of electronic media and other 19 nonpaper media containing personal information so that the personal information 20 cannot practicably be read or reconstructed; 21 (3) after due diligence, entering into a written contract with a third 22 party engaged in the business of record destruction to dispose of records containing 23 personal information in a manner consistent with AS 45.48.500 - 45.48.590. 24 Sec. 45.48.520. Due diligence. In AS 45.48.510(3), due diligence ordinarily 25 includes performing one or more of the following: 26 (1) reviewing an independent audit of the third party's operations and 27 its compliance with AS 45.48.500 - 45.48.590; 28 (2) obtaining information about the third party from several references 29 or other reliable sources and requiring that the third party be certified by a recognized 30 trade association or similar organization with a reputation for high standards of quality 31 review; or

01 (3) reviewing and evaluating the third party's information security 02 policies and procedures, or taking other appropriate measures to determine the 03 competency and integrity of the third party. 04 Sec. 45.48.530. Policy and procedures. A business or governmental agency 05 shall adopt written policies and procedures that relate to the adequate destruction and 06 proper disposal of records containing personal information and that are consistent with 07 AS 45.48.500 - 45.48.590. 08 Sec. 45.48.540. Exemptions. (a) A business or a governmental agency is not 09 required to comply with AS 45.48.500 - 45.48.530 if federal law requires that the 10 business or governmental agency act in a way that does not comply with AS 45.48.500 11 - 45.48.530. 12 (b) A business is not required to comply with AS 45.48.500 - 45.48.530 if 13 (1) the business is subject to and in compliance with the Gramm- 14 Leach-Bliley Financial Modernization Act; or 15 (2) the manner of the disposal of the records of the business is subject 16 to 15 U.S.C. 1681w of the Fair Credit Reporting Act and the business is complying 17 with 15 U.S.C. 1861w. 18 Sec. 45.48.550. Civil penalty. (a) An individual, a business, or a governmental 19 agency that knowingly violates AS 45.48.500 - 45.48.590 is liable to the state for a 20 civil penalty not to exceed $3,000. 21 (b) In this section, "knowingly" has the meaning given in AS 11.81.900. 22 Sec. 45.48.560. Court action. An individual who is damaged by a violation of 23 AS 45.48.500 - 45.48.590 may bring a civil action in court to enjoin further violations 24 and to recover for the violation actual economic damages, court costs allowed by the 25 rules of court, and full reasonable attorney fees. 26 Sec. 45.48.590. Definitions. In AS 45.48.500 - 45.48.590, 27 (1) "business" means a person who conducts business in the state or a 28 person who conducts business and maintains or otherwise possesses personal 29 information on state residents; in this paragraph, 30 (A) "conducts business" includes engaging in activities as a 31 financial institution organized, chartered, or holding a license or authorization

01 certificate under the laws of this state, another state, the United States, or 02 another country; 03 (B) "possesses" includes possession for the purpose of 04 destruction; 05 (2) "dispose" means 06 (A) the discarding or abandonment of records containing 07 personal information; 08 (B) the sale, donation, discarding, or transfer of 09 (i) any medium, including computer equipment or 10 computer media, that contains records of personal information; 11 (ii) nonpaper media, other than that identified under (i) 12 of this subparagraph, on which records of personal information are 13 stored; and 14 (iii) equipment for nonpaper storage of information; 15 (3) "governmental agency" means a state or local governmental 16 agency, except for an agency of the judicial branch; 17 (4) "personal information" means 18 (A) an individual's passport number, driver's license number, 19 state identification number, bank account number, credit card number, debit 20 card number, other payment card number, financial account information, or 21 information from a financial application; or 22 (B) a combination of an individual's 23 (i) name; and 24 (ii) medical information, insurance policy number, 25 employment information, or employment history; 26 (5) "records" means material on which information that is written, 27 drawn, spoken, visual, or electromagnetic is recorded or preserved, regardless of 28 physical form or characteristics, but does not include publicly available information 29 containing names, addresses, telephone numbers, or other information an individual 30 has voluntarily consented to have publicly disseminated or listed. 31 Article 5. Factual Declaration of Innocence after Identity Theft; Right to File Police

01 Report Regarding Identity Theft. 02 Sec. 45.48.600. Factual declaration of innocence after identity theft. (a) A 03 victim of identity theft may petition the superior court for a determination that the 04 victim is factually innocent of a crime if 05 (1) the perpetrator of the identity theft was arrested for, cited for, or 06 convicted of the crime using the victim's identity; 07 (2) a criminal complaint was filed against the perpetrator of the 08 identity theft; and 09 (3) the victim's identity was mistakenly associated with a record of a 10 conviction for a crime. 11 (b) In addition to a petition by a victim under (a) of this section, the 12 department may petition the superior court for a determination under (a) of this 13 section, or the superior court may, on its own motion, make a determination under (a) 14 of this section. 15 Sec. 45.48.610. Basis for determination. A determination of factual 16 innocence under AS 45.48.600 may be heard and made on declarations, affidavits, 17 police reports, or other material, relevant, and reliable information submitted by the 18 parties or ordered to be made a part of the record by the court. 19 Sec. 45.48.620. Criteria for determination; court order. (a) A court may 20 determine that a petitioner under AS 45.48.600 is factually innocent of a crime if the 21 court finds beyond a reasonable doubt that 22 (1) the petitioner is a victim of identity theft; 23 (2) the petitioner did not commit the offense for which the perpetrator 24 of the identity theft was arrested, cited, or convicted; 25 (3) the petitioner filed a criminal complaint against the perpetrator of 26 the identity theft; and 27 (4) the petitioner's identity was mistakenly associated with a record of 28 conviction for the crime. 29 (b) If a court finds under this section that the victim is factually innocent of a 30 crime, the court shall issue an order indicating this determination of factual innocence 31 and shall provide the victim with a copy of the order.

01 Sec. 45.48.630. Orders regarding records. After a court issues an order under 02 AS 45.48.620, the court may order the name and associated personal information of 03 the victim of identity theft that is contained in the files, indexes, and other records of 04 the court that are accessible by the public labeled to show that the name and personal 05 information of the victim of identity theft is incorrect. 06 Sec. 45.48.640. Vacation of determination. A court that has issued an order 07 under AS 45.48.620 may, at any time, vacate the order if the petition, or any 08 information submitted in support of the petition, is found to contain a material 09 misrepresentation, omission, or false information. 10 Sec. 45.48.650. Court form. The supreme court of the state may develop a 11 form to be used for the order under AS 45.48.620. 12 Sec. 45.48.660. Data base. The department may establish and maintain a data 13 base of individuals who have been victims of identity theft and who have received an 14 order under AS 45.48.620. The department shall provide a victim or the victim's 15 authorized representative access to a data base established under this section to 16 establish that the individual has been a victim of identity theft. Access to the a data 17 base established under this section is limited to criminal justice agencies, victims of 18 identity theft, and individuals and agencies authorized by the victims. 19 Sec. 45.48.670. Toll-free telephone number. The department may establish 20 and maintain a toll-free telephone number to provide access to information in a data 21 base established under AS 45.48.660. 22 Sec. 45.48.680. Right to file police report regarding identity theft. (a) Even 23 if the local law enforcement agency does not have jurisdiction over the theft of an 24 individual's identity, if an individual who has learned or reasonably suspects the 25 individual has been the victim of identity theft contacts, for the purpose of filing a 26 complaint, a local law enforcement agency that has jurisdiction over the individual's 27 actual place of residence, the local law enforcement agency shall make a report of the 28 matter and provide the individual with a copy of the report. The local law enforcement 29 agency may refer the matter to a law enforcement agency in a different jurisdiction. 30 (b) This section is not intended to interfere with the discretion of a local law 31 enforcement agency to allocate its resources to the investigation of crime. A local law

01 enforcement agency is not required to count a complaint filed under (a) of this section 02 as an open case for purposes that include compiling statistics on its open cases. 03 Sec. 45.48.690. Definitions. In AS 45.48.600 - 45.48.690, 04 (1) "crime" has the meaning given in AS 11.81.900; 05 (2) "department" means the Department of Law; 06 (3) "perpetrator" means the person who perpetrated the theft of an 07 individual's identity; 08 (4) "victim" means an individual who is the victim of identity theft. 09 Article 6. Truncation of Card Information. 10 Sec. 45.48.750. Truncation of card information. (a) A person who accepts 11 credit cards or debit cards for the transaction of business may not print more than the 12 last four digits of the card number or the expiration date on any receipt or other 13 physical record of the transaction provided at the point of the sale or transaction. 14 (b) This section applies only to receipts that are electronically printed and does 15 not apply to transactions in which the sole means of recording a credit card or debit 16 card account number is by handwriting or by an imprint or copy of the card. 17 (c) A person may not sell a device that electronically prints more than the last 18 four digits of a credit card or debit card on a consumer receipt for a business 19 transaction or on a copy retained by a business person for a business transaction. 20 (d) An individual may bring a civil action in court against a person who 21 knowingly violates (a) of this section and may recover actual economic damages, 22 court costs allowed by the rules of court, and full reasonable attorney fees. 23 (e) A person who knowingly violates this section is liable to the state for a 24 civil penalty not to exceed $3,000. 25 (f) In this section, 26 (1) "credit" means the right granted by a creditor to a debtor to defer 27 payment of debt, to incur debts and defer payment of the debt, or to purchase property 28 or services and defer payment of the purchase;in this paragraph, "creditor" means a 29 person who regularly extends, renews, or continues credit, a person who regularly 30 arranges for the extension, renewal, or continuation of credit, or an assignee of an 31 original creditor who participates in the decision to extend, renew, or continue credit;

01 (2) "credit card" means a card, plate, coupon book, or other credit 02 device existing for the purpose of obtaining money, property, labor, or services on 03 credit; 04 (3) "debit card" means a card issued by a financial institution to a 05 consumer for use in initiating an electronic fund transfer from the account of the 06 consumer at the financial institution for the purpose of transferring money between 07 accounts or obtaining money, property, labor, or services; 08 (4) "knowingly" has the meaning given in AS 11.81.900. 09 Article 7. General Provisions. 10 Sec. 45.48.990. Definitions. In this chapter, unless the context indicates 11 otherwise, 12 (1) "consumer" means an individual; 13 (2) "consumer credit reporting agency" means a person who, for 14 monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or 15 in part in the practice of assembling or evaluating consumer credit information or 16 other information on consumers for the purpose of furnishing credit reports to third 17 parties; 18 (3) "credit report" means a written, oral, or other communication of 19 information by a consumer credit reporting agency bearing on a consumer's credit 20 worthiness, credit standing, credit capacity, character, general reputation, personal 21 characteristics, or mode of living if the communication is used or expected to be used 22 or collected in whole or in part to serve as a factor in establishing the consumer's 23 eligibility for 24 (A) credit or insurance to be used primarily for personal, 25 family, or household purposes; 26 (B) employment purposes; or 27 (C) any other permissible purpose authorized under section 15 28 U.S.C. 1681b; 29 (4) "Fair Credit Reporting Act" means 15 U.S.C. 1681 - 1681x; 30 (5) "Gramm-Leach-Bliley Financial Modernization Act" means 15 31 U.S.C. 6801 - 6827;

01 (6) "identity theft" means the theft of the identity of an individual; 02 (7) "information system" means any information system, including a 03 system consisting of digital data bases and a system consisting of pieces of paper; 04 (8) "person" has the meaning given in AS 01.10.060 and includes a 05 state or local governmental agency, except for an agency of the judicial branch; 06 (9) "state resident" means an individual who satisfies the residency 07 requirements under AS 01.10.055. 08 Sec. 45.48.995. Short title. This chapter may be cited as the Alaska Personal 09 Information Protection Act. 10 * Sec. 4. AS 45.50.471(b) is amended by adding a new paragraph to read: 11 (53) an information collector, other than a governmental agency, 12 violating AS 45.48.010 - 45.48.090 (breach of security involving personal 13 information); in this paragraph, 14 (A) "governmental agency" has the meaning given in 15 AS 45.48.090; 16 (B) "information collector" has the meaning given in 17 AS 45.48.090. 18 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 19 read: 20 INDIRECT COURT RULE AMENDMENTS. (a) AS 45.48.640, enacted by sec. 3 of 21 this Act, has the effect of changing Rule 60(b), Alaska Rules of Civil Procedure, by allowing 22 a court to vacate an order on its own motion and at any time and by establishing a specific 23 criterion for vacating the order under AS 45.48.640. 24 (b) AS 45.48.200(a), 45.48.480(b), 45.48.560, and 45.48.750(d), enacted by sec. 3 of 25 this Act, have the effect of changing Rule 82, Alaska Rules of Civil Procedure, by changing 26 the criteria for determining the amount of attorney fees to be awarded to a party in an action 27 under AS 45.48.200(a), 45.48.480(b), 45.48.560, or 45.48.750(d). 28 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 TRANSITION: REGULATIONS. A state agency may proceed to adopt regulations 31 necessary to implement this Act. The regulations take effect under AS 44.62 (Administrative

01 Procedure Act), but not before the effective date of the law implemented by the regulation. 02 * Sec. 7. AS 45.48.470, enacted by sec. 3 of this Act, takes effect immediately under 03 AS 01.10.070(c). 04 * Sec. 8. Section 6 of this Act takes effect immediately under AS 01.10.070(c). 05 * Sec. 9. Except as provided by secs. 7 and 8 of this Act, this Act takes effect January 1, 06 2009.