SB 93: "An Act relating to security freezes on the credit reports or records of incapacitated persons and certain minors."
00 SENATE BILL NO. 93 01 "An Act relating to security freezes on the credit reports or records of incapacitated 02 persons and certain minors." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 45.48.220 is repealed and reenacted to read: 05 Sec. 45.48.220. Security freeze for protected consumer. Except as expressly 06 referred to in AS 45.48.390, the provisions of AS 45.48.100 - 45.48.290 do not apply 07 to a security freeze on the credit report or record of a protected consumer. In this 08 section, "protected consumer" has the meaning given in AS 45.48.395. 09 * Sec. 2. AS 45.48 is amended by adding new sections to read: 10 Article 2A. Security Freeze for Protected Consumer. 11 Sec. 45.48.300. Placement of security freeze. Except as provided in 12 AS 45.48.310, a consumer credit reporting agency shall place a security freeze on a 13 protected consumer's credit report if 14 (1) the consumer credit reporting agency receives a request from the
01 protected consumer's representative for the placement of the security freeze under this 02 section; and 03 (2) the protected consumer's representative 04 (A) submits the request to the consumer credit reporting agency 05 at the address or other point of contact of the consumer credit reporting agency 06 and in the manner specified by the consumer credit reporting agency; 07 (B) provides to the consumer credit reporting agency sufficient 08 proof of identification of the protected consumer; 09 (C) provides to the consumer credit reporting agency sufficient 10 proof of identification of the protected consumer's representative and sufficient 11 proof of authority of the protected consumer's representative to act on behalf of 12 the protected consumer; and 13 (D) pays the consumer credit reporting agency a fee as 14 provided in AS 45.48.380. 15 Sec. 45.48.310. Record. (a) If a consumer credit reporting agency does not 16 have a credit report on a protected consumer when the consumer credit reporting 17 agency receives a request under AS 45.48.300 that satisfies the requirements of 18 AS 45.48.300, the consumer credit reporting agency shall create a record for the 19 protected consumer and shall place a security freeze on the record. 20 (b) A consumer credit reporting agency may not use a protected consumer's 21 record to consider the protected consumer's creditworthiness, credit standing, credit 22 capacity, character, general reputation, personal characteristics, or mode of living for 23 any permissible purpose under 15 U.S.C. 1681b. 24 Sec. 45.48.320. Proof of identification and authority. (a) The following 25 information is sufficient proof of identification under AS 45.48.300: 26 (1) a social security number or a copy of the social security card issued 27 by the United States Social Security Administration; 28 (2) a certified or official copy of a birth certificate issued by the entity 29 authorized to issue the birth certificate; 30 (3) a copy of a driver's license or identification card issued by the 31 Department of Administration; or
01 (4) other identification issued by an agency of the United States 02 government, a state, or a municipality. 03 (b) The following information is sufficient proof of authority under 04 AS 45.48.300: 05 (1) an order issued by a court; or 06 (2) a written, notarized statement that expressly describes the authority 07 of a protected consumer's representative to act on behalf of the protected consumer 08 and that the protected consumer's representative has signed. 09 Sec. 45.48.330. Time of placement of security freeze. A consumer credit 10 reporting agency shall place a security freeze on a protected consumer's credit report 11 or record not later than 30 days after receiving a request that meets the requirements of 12 AS 45.48.300. 13 Sec. 45.48.340. Operation of security freeze. After a consumer credit 14 reporting agency places a security freeze on a credit report or record of a protected 15 consumer under AS 45.48.300 or 45.48.310, the consumer credit reporting agency 16 may not release a credit report or record relating to the protected consumer or 17 information derived from the protected consumer's credit report or record without the 18 express permission of the protected consumer's representative or the protected 19 consumer, unless the consumer credit reporting agency removes the security freeze 20 under AS 45.48.360 or 45.48.370. 21 Sec. 45.48.350. Duration of security freeze. A security freeze on a protected 22 consumer's credit report or record remains in effect until 23 (1) the protected consumer's representative or the protected consumer 24 requests that the consumer credit reporting agency remove the security freeze under 25 AS 45.48.360; or 26 (2) a consumer credit reporting agency removes the security freeze 27 under AS 45.48.370. 28 Sec. 45.48.360. Removal of security freeze. (a) A protected consumer or a 29 protected consumer's representative may remove a security freeze on a protected 30 consumer's credit report or record if the protected consumer or protected consumer's 31 representative
01 (1) submits a request for removal of the security freeze to the 02 consumer credit reporting agency at the address or other point of contact of the 03 reporting agency in the manner specified by the consumer credit reporting agency; 04 (2) provides to the consumer credit reporting agency, 05 (A) in the case of a request by the protected consumer, 06 (i) sufficient proof of identification of the protected 07 consumer; and 08 (ii) proof that the sufficient proof of authority for the 09 protected consumer's representative to act on behalf of the protected 10 consumer is no longer valid; or 11 (B) in the case of a request by the representative of a protected 12 consumer, 13 (i) sufficient proof of identification of the protected 14 consumer and the representative; and 15 (ii) sufficient proof of authority to act on behalf of the 16 protected consumer; and 17 (3) pays to the consumer credit reporting agency a fee under 18 AS 45.48.380. 19 (b) The consumer credit reporting agency shall remove the security freeze on 20 the protected consumer's credit report or record not later than 30 days after the date the 21 agency receives a request that meets the requirements of (a) of this section. 22 Sec. 45.48.370. Effect of material misrepresentation of fact. A consumer 23 credit reporting agency may remove a security freeze on a protected consumer's credit 24 report or record, or delete a record of a protected consumer, if the protected consumer 25 or the protected consumer's representative obtained the security freeze by using a 26 material misrepresentation of fact. 27 Sec. 45.48.380. Charges. (a) Except as provided in (b) of this section, a 28 consumer credit reporting agency may charge $5 to place a security freeze on a 29 protected consumer's credit report or record. A consumer credit reporting agency may 30 not charge a fee to remove a security freeze from a protected consumer's credit report 31 or record.
01 (b) A consumer credit reporting agency may not charge a fee for the 02 placement of a security freeze under AS 45.48.300 - 45.48.390 if 03 (1) the protected consumer's representative submits to the consumer 04 credit reporting agency a copy of a valid police report, investigative report, or 05 complaint involving the commission of an offense under AS 11.46.565 that involves 06 criminal impersonation of the protected consumer; or 07 (2) when the protected consumer's representative requests a security 08 freeze, 09 (A) the protected consumer is under 16 years of age; and 10 (B) the consumer credit reporting agency has created a credit 11 report relating to the protected consumer. 12 Sec. 45.48.390. Exemptions. AS 45.48.300 - 45.48.390 do not apply to the use 13 of a credit report or record by 14 (1) a person acting under a court order, warrant, or subpoena; 15 (2) an agency of a state or municipality that administers a program for 16 establishing and enforcing child support obligations; 17 (3) the Department of Health and Social Services or its agents when 18 investigating fraud; 19 (4) the Department of Revenue, its agents, or its assigns when 20 investigating or collecting delinquent taxes or unpaid court orders or when 21 implementing its other statutory responsibilities; 22 (5) a person administering a credit file monitoring subscription service 23 to which the protected consumer has subscribed; 24 (6) a person providing a protected consumer with a copy of the 25 consumer's credit report or credit score at the request of the protected consumer or the 26 protected consumer's representative; 27 (7) a person if the database or credit report of the consumer credit 28 reporting agency consists entirely of information concerning and used solely for one 29 or more of the following purposes: 30 (A) criminal record information; 31 (B) personal loss history information;
01 (C) fraud prevention or detection; 02 (D) tenant screening; or 03 (E) employment screening; 04 (8) a person that provides check services or fraud prevention services 05 and issues 06 (A) reports on incidents of fraud; or 07 (B) authorizations for the purpose of approving or processing 08 negotiable instruments, electronic funds transfers, or similar payment methods; 09 or 10 (9) a person that issues reports regarding account closures because of 11 fraud, substantial overdrafts, automated teller machine abuse, or similar information 12 regarding a consumer to inquiring banks or other financial institutions solely for use 13 by the banks or other financial institutions to review a consumer request for a deposit 14 account at the inquiring bank or financial institution. 15 Sec. 45.48.395. Definitions. In AS 45.48.300 - 45.48.395, 16 (1) "consumer" has the meaning given in AS 45.48.290; 17 (2) "consumer credit reporting agency" has the meaning given in 18 AS 45.48.290; 19 (3) "incapacitated person" has the meaning given in AS 47.24.900; 20 (4) "proof of authority and identification" means the proof of authority 21 and identification required for a protected consumer's representative by AS 45.48.300; 22 (5) "protected consumer" means a person who is an incapacitated 23 person or under 16 years of age; 24 (6) "record" means the record created under AS 45.48.310; 25 (7) "representative" means a person who has authority to act on behalf 26 of a protected consumer; 27 (8) "security freeze" means the restriction described in AS 45.48.340 28 on releasing a credit report or record. 29 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 30 read: 31 TRANSITION. A security freeze placed under AS 45.48.220, as it read on the day
01 before the effective date of this Act, remains in effect after the effective date of this Act and is 02 subject to AS 45.48.100 - 45.48.290 until the security freeze is removed under AS 45.48.140. 03 In this section, "security freeze" has the meaning given in AS 45.48.290.