HCS SB 93(JUD): "An Act relating to the fees that may be charged by a consumer credit reporting agency; relating to the placement of security freezes on credit reports and credit scores; and relating to security freezes on the credit reports or records of incapacitated persons and certain minors."
00 HOUSE CS FOR SENATE BILL NO. 93(JUD) 01 "An Act relating to the fees that may be charged by a consumer credit reporting agency; 02 relating to the placement of security freezes on credit reports and credit scores; and 03 relating to security freezes on the credit reports or records of incapacitated persons and 04 certain minors." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 45.48.160(a) is amended to read: 07 (a) Except as provided by [(b),] (c) [, OR (d)] of this section, a consumer 08 credit reporting agency may not charge a consumer to place or remove a security 09 freeze, to provide access under AS 45.48.130, or to take any other action, including 10 the issuance of a personal identification number, password, or similar device under 11 AS 45.48.120, that is related to the placement of, removal of, or allowing access to a 12 credit report or credit score on which a security freeze has been placed. 13 * Sec. 2. AS 45.48.160(e) is amended to read: 14 (e) A consumer credit reporting agency may not charge a consumer a fee
01 under [(b) OR] (c) of this section if the consumer has been a victim of identity theft 02 and provides the consumer credit reporting agency with a complaint filed by the 03 consumer with a law enforcement agency. 04 * Sec. 3. AS 45.48.170 is amended to read: 05 Sec. 45.48.170. Notice of rights. When a consumer credit reporting agency is 06 required to give a consumer a summary of rights under 15 U.S.C. 1681g (Fair Credit 07 Reporting Act), a consumer credit reporting agency shall also give the consumer the 08 following notice: 09 Consumers Have the Right to Obtain a Security Freeze 10 You may obtain a security freeze on your credit report and 11 credit score without charge [FOR $5] to protect your privacy and 12 ensure that credit is not granted in your name without your knowledge. 13 [YOU MAY NOT HAVE TO PAY THE $5 CHARGE IF YOU ARE 14 A VICTIM OF IDENTITY THEFT.] You have a right to place a 15 security freeze on your credit report and credit score under state law 16 (AS 45.48.100 - 45.48.290). 17 The security freeze will prohibit a consumer credit reporting 18 agency from releasing your credit score and any information in your 19 credit report without your express authorization or approval. 20 The security freeze is designed to prevent credit, loans, and 21 other services from being approved in your name without your consent. 22 However, you should be aware that using a security freeze to take 23 control over who gets access to the personal and financial information 24 in your credit report and credit score may delay, interfere with, or 25 prohibit the timely approval of any subsequent request or application 26 you make regarding a new loan, credit, a mortgage, a governmental 27 service, a governmental payment, a cellular telephone, a utility, an 28 Internet credit card application, an extension of credit at point of sale, 29 and other items and services. 30 When you place a security freeze on your credit report and 31 credit score, within 10 business days, you will be provided a personal
01 identification number, password, or similar device to use if you choose 02 to remove the freeze on your credit report and credit score or to 03 temporarily authorize the release of your credit report and credit score 04 to a specific third party or specific third parties or for a specific period 05 of time after the freeze is in place. To provide that authorization, you 06 must contact the consumer credit reporting agency and provide all of 07 the following: 08 (1) proper identification to verify your identity; 09 (2) the personal identification number, password, or 10 similar device provided by the consumer credit reporting agency; 11 (3) proper information necessary to identify the third 12 party or third parties who are authorized to receive the credit report and 13 credit score or the specific period of time for which the credit report 14 and credit score are to be available to third parties. 15 A consumer credit reporting agency that receives your request 16 to temporarily lift a freeze on a credit report and credit score is required 17 to comply with the request within 15 minutes, except after normal 18 business hours and under certain other conditions, after receiving your 19 request if you make the request by telephone, or an electronic method if 20 the agency provides an electronic method, or within three business days 21 after receiving your request if you make the request by mail. The 22 consumer credit reporting agency may charge you $2 to temporarily lift 23 the freeze. You may not have to pay the $2 charge if you are a 24 victim of identity theft. 25 A security freeze does not apply to circumstances where you 26 have an existing account relationship and a copy of your credit report 27 and credit score are requested by your existing creditor or its agents or 28 affiliates for certain types of account review, collection, fraud control, 29 or similar activities. 30 If you are actively seeking credit, you should understand that 31 the procedures involved in lifting a security freeze may slow your own
01 applications for credit. You should plan ahead and lift a freeze, either 02 completely if you are shopping around, or specifically for a certain 03 creditor, days before applying for new credit. 04 You have a right to bring a civil action against someone who 05 violates your rights under these laws on security freezes. The action can 06 be brought against a consumer credit reporting agency. 07 * Sec. 4. AS 45.48.220 is repealed and reenacted to read: 08 Sec. 45.48.220. Security freeze for protected consumer. Except as expressly 09 referred to in AS 45.48.390, the provisions of AS 45.48.100 - 45.48.290 do not apply 10 to a security freeze on the credit report or record of a protected consumer. In this 11 section, "protected consumer" has the meaning given in AS 45.48.395. 12 * Sec. 5. AS 45.48 is amended by adding new sections to read: 13 Article 2A. Security Freeze for Protected Consumer. 14 Sec. 45.48.300. Placement of security freeze. Except as provided in 15 AS 45.48.310, a consumer credit reporting agency shall place a security freeze on a 16 protected consumer's credit report if 17 (1) the consumer credit reporting agency receives a request from the 18 protected consumer's representative for the placement of the security freeze under this 19 section; and 20 (2) the protected consumer's representative 21 (A) submits the request to the consumer credit reporting agency 22 at the address or other point of contact of the consumer credit reporting agency 23 and in the manner specified by the consumer credit reporting agency; 24 (B) provides to the consumer credit reporting agency sufficient 25 proof of identification of the protected consumer; 26 (C) provides to the consumer credit reporting agency sufficient 27 proof of identification of the protected consumer's representative and sufficient 28 proof of authority of the protected consumer's representative to act on behalf of 29 the protected consumer; and 30 (D) pays the consumer credit reporting agency a fee as 31 provided in AS 45.48.380.
01 Sec. 45.48.310. Record. (a) If a consumer credit reporting agency does not 02 have a credit report on a protected consumer when the consumer credit reporting 03 agency receives a request under AS 45.48.300 that satisfies the requirements of 04 AS 45.48.300, the consumer credit reporting agency shall create a record for the 05 protected consumer and shall place a security freeze on the record. 06 (b) A consumer credit reporting agency may not use a protected consumer's 07 record to consider the protected consumer's creditworthiness, credit standing, credit 08 capacity, character, general reputation, personal characteristics, or mode of living for 09 any permissible purpose under 15 U.S.C. 1681b. 10 Sec. 45.48.320. Proof of identification and authority. (a) The following 11 information is sufficient proof of identification under AS 45.48.300: 12 (1) a social security number or a copy of the social security card issued 13 by the United States Social Security Administration; 14 (2) a certified or official copy of a birth certificate issued by the entity 15 authorized to issue the birth certificate; 16 (3) a copy of a driver's license or identification card issued by the 17 Department of Administration; or 18 (4) other identification issued by an agency of the United States 19 government, a state, or a municipality. 20 (b) The following information is sufficient proof of authority under 21 AS 45.48.300: 22 (1) an order issued by a court; or 23 (2) a written, notarized statement that expressly describes the authority 24 of a protected consumer's representative to act on behalf of the protected consumer 25 and that the protected consumer's representative has signed. 26 Sec. 45.48.330. Time of placement of security freeze. A consumer credit 27 reporting agency shall place a security freeze on a protected consumer's credit report 28 or record not later than 30 days after receiving a request that meets the requirements of 29 AS 45.48.300. 30 Sec. 45.48.340. Operation of security freeze. After a consumer credit 31 reporting agency places a security freeze on a credit report or record of a protected
01 consumer under AS 45.48.300 or 45.48.310, the consumer credit reporting agency 02 may not release a credit report or record relating to the protected consumer or 03 information derived from the protected consumer's credit report or record without the 04 express permission of the protected consumer's representative or the protected 05 consumer, unless the consumer credit reporting agency removes the security freeze 06 under AS 45.48.360 or 45.48.370. 07 Sec. 45.48.350. Duration of security freeze. A security freeze on a protected 08 consumer's credit report or record remains in effect until 09 (1) the protected consumer's representative or the protected consumer 10 requests that the consumer credit reporting agency remove the security freeze under 11 AS 45.48.360; or 12 (2) a consumer credit reporting agency removes the security freeze 13 under AS 45.48.370. 14 Sec. 45.48.360. Removal of security freeze. (a) A protected consumer or a 15 protected consumer's representative may remove a security freeze on a protected 16 consumer's credit report or record if the protected consumer or protected consumer's 17 representative 18 (1) submits a request for removal of the security freeze to the 19 consumer credit reporting agency at the address or other point of contact of the 20 reporting agency in the manner specified by the consumer credit reporting agency; 21 (2) provides to the consumer credit reporting agency, 22 (A) in the case of a request by the protected consumer, 23 (i) sufficient proof of identification of the protected 24 consumer; and 25 (ii) proof that the sufficient proof of authority for the 26 protected consumer's representative to act on behalf of the protected 27 consumer is no longer valid; or 28 (B) in the case of a request by the representative of a protected 29 consumer, 30 (i) sufficient proof of identification of the protected 31 consumer and the representative; and
01 (ii) sufficient proof of authority to act on behalf of the 02 protected consumer; and 03 (3) pays to the consumer credit reporting agency a fee under 04 AS 45.48.380. 05 (b) The consumer credit reporting agency shall remove the security freeze on 06 the protected consumer's credit report or record not later than 30 days after the date the 07 agency receives a request that meets the requirements of (a) of this section. 08 Sec. 45.48.370. Effect of material misrepresentation of fact. A consumer 09 credit reporting agency may remove a security freeze on a protected consumer's credit 10 report or record, or delete a record of a protected consumer, if the protected consumer 11 or the protected consumer's representative obtained the security freeze by using a 12 material misrepresentation of fact. 13 Sec. 45.48.380. Charges. (a) Except as provided in (b) of this section, a 14 consumer credit reporting agency may charge $5 to place a security freeze on a 15 protected consumer's credit report or record. A consumer credit reporting agency may 16 not charge a fee to remove a security freeze from a protected consumer's credit report 17 or record. 18 (b) A consumer credit reporting agency may not charge a fee for the 19 placement of a security freeze under AS 45.48.300 - 45.48.390 if 20 (1) the protected consumer's representative submits to the consumer 21 credit reporting agency a copy of a valid police report, investigative report, or 22 complaint involving the commission of an offense under AS 11.46.565 that involves 23 criminal impersonation of the protected consumer; or 24 (2) when the protected consumer's representative requests a security 25 freeze, 26 (A) the protected consumer is under 16 years of age; and 27 (B) the consumer credit reporting agency has created a credit 28 report relating to the protected consumer. 29 Sec. 45.48.390. Exemptions. AS 45.48.300 - 45.48.390 do not apply to the use 30 of a credit report or record by 31 (1) a person acting under a court order, warrant, or subpoena;
01 (2) an agency of a state or municipality that administers a program for 02 establishing and enforcing child support obligations; 03 (3) the Department of Health and Social Services or its agents when 04 investigating fraud; 05 (4) the Department of Revenue, its agents, or its assigns when 06 investigating or collecting delinquent taxes or unpaid court orders or when 07 implementing its other statutory responsibilities; 08 (5) a person administering a credit file monitoring subscription service 09 to which the protected consumer has subscribed; 10 (6) a person providing a protected consumer with a copy of the 11 consumer's credit report or credit score at the request of the protected consumer or the 12 protected consumer's representative; 13 (7) a person if the database or credit report of the consumer credit 14 reporting agency consists entirely of information concerning and used solely for one 15 or more of the following purposes: 16 (A) criminal record information; 17 (B) personal loss history information; 18 (C) fraud prevention or detection; 19 (D) tenant screening; or 20 (E) employment screening; 21 (8) a person that provides check services or fraud prevention services 22 and issues 23 (A) reports on incidents of fraud; or 24 (B) authorizations for the purpose of approving or processing 25 negotiable instruments, electronic funds transfers, or similar payment methods; 26 or 27 (9) a person that issues reports regarding account closures because of 28 fraud, substantial overdrafts, automated teller machine abuse, or similar information 29 regarding a consumer to inquiring banks or other financial institutions solely for use 30 by the banks or other financial institutions to review a consumer request for a deposit 31 account at the inquiring bank or financial institution.
01 Sec. 45.48.395. Definitions. In AS 45.48.300 - 45.48.395, 02 (1) "consumer" has the meaning given in AS 45.48.290; 03 (2) "consumer credit reporting agency" has the meaning given in 04 AS 45.48.290; 05 (3) "incapacitated person" has the meaning given in AS 47.24.900; 06 (4) "proof of authority and identification" means the proof of authority 07 and identification required for a protected consumer's representative by AS 45.48.300; 08 (5) "protected consumer" means a person who is an incapacitated 09 person or under 16 years of age; 10 (6) "record" means the record created under AS 45.48.310; 11 (7) "representative" means a person who has authority to act on behalf 12 of a protected consumer; 13 (8) "security freeze" means the restriction described in AS 45.48.340 14 on releasing a credit report or record. 15 * Sec. 6. AS 45.48.160(b) and 45.48.160(d) are repealed. 16 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 TRANSITION. A security freeze placed under AS 45.48.220, as it read on the day 19 before the effective date of this Act, remains in effect after the effective date of this Act and is 20 subject to AS 45.48.100 - 45.48.290 until the security freeze is removed under AS 45.48.140. 21 In this section, "security freeze" has the meaning given in AS 45.48.290.