Legislature(2017 - 2018)GRUENBERG 120
03/30/2018 01:00 PM House JUDICIARY
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Audio | Topic |
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Start | |
SB93 | |
HB184 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
+= | SB 93 | TELECONFERENCED | |
+ | HB 184 | TELECONFERENCED | |
+ | TELECONFERENCED | ||
+= | HB 355 | TELECONFERENCED | |
SB 93-CREDIT REPORT SECURITY FREEZE 2:49:10 PM CHAIR CLAMAN announced that the first order of business would be SENATE BILL NO. 93, "An Act relating to security freezes on the credit reports or records of incapacitated persons and certain minors." 2:50:09 PM CHAIR CLAMAN moved to adopt Amendment 1, labeled 30-LS0265\O.2, Banister, 3/13/18, which read as follows: Page 1, line 1, following "Act": Insert "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" Page 1, following line 3: Insert new bill sections to read: "* Section 1. AS 45.48.160(a) is amended to read: (a) Except as provided by [(b),] (c) [, OR (d)] of this section, a consumer credit reporting agency may not charge a consumer to place or remove a security freeze, to provide access under AS 45.48.130, or to take any other action, including the issuance of a personal identification number, password, or similar device under AS 45.48.120, that is related to the placement of, removal of, or allowing access to a credit report or credit score on which a security freeze has been placed. * Sec. 2. AS 45.48.160(e) is amended to read: (e) A consumer credit reporting agency may not charge a consumer a fee under [(b) OR] (c) of this section if the consumer has been a victim of identity theft and provides the consumer credit reporting agency with a complaint filed by the consumer with a law enforcement agency. * Sec. 3. AS 45.48.170 is amended to read: Sec. 45.48.170. Notice of rights. When a consumer credit reporting agency is required to give a consumer a summary of rights under 15 U.S.C. 1681g (Fair Credit Reporting Act), a consumer credit reporting agency shall also give the consumer the following notice: Consumers Have the Right to Obtain a Security Freeze You may obtain a security freeze on your credit report and credit score without charge [FOR $5] to protect your privacy and ensure that credit is not granted in your name without your knowledge. [YOU MAY NOT HAVE TO PAY THE $5 CHARGE IF YOU ARE A VICTIM OF IDENTITY THEFT.] You have a right to place a security freeze on your credit report and credit score under state law (AS 45.48.100 - 45.48.290). The security freeze will prohibit a consumer credit reporting agency from releasing your credit score and any information in your credit report without your express authorization or approval. The security freeze is designed to prevent credit, loans, and other services from being approved in your name without your consent. However, you should be aware that using a security freeze to take control over who gets access to the personal and financial information in your credit report and credit score may delay, interfere with, or prohibit the timely approval of any subsequent request or application you make regarding a new loan, credit, a mortgage, a governmental service, a governmental payment, a cellular telephone, a utility, an Internet credit card application, an extension of credit at point of sale, and other items and services. When you place a security freeze on your credit report and credit score, within 10 business days, you will be provided a personal identification number, password, or similar device to use if you choose to remove the freeze on your credit report and credit score or to temporarily authorize the release of your credit report and credit score to a specific third party or specific third parties or for a specific period of time after the freeze is in place. To provide that authorization, you must contact the consumer credit reporting agency and provide all of the following: (1) proper identification to verify your identity; (2) the personal identification number, password, or similar device provided by the consumer credit reporting agency; (3) proper information necessary to identify the third party or third parties who are authorized to receive the credit report and credit score or the specific period of time for which the credit report and credit score are to be available to third parties. A consumer credit reporting agency that receives your request to temporarily lift a freeze on a credit report and credit score is required to comply with the request within 15 minutes, except after normal business hours and under certain other conditions, after receiving your request if you make the request by telephone, or an electronic method if the agency provides an electronic method, or within three business days after receiving your request if you make the request by mail. The consumer credit reporting agency may charge you $2 to temporarily lift the freeze. You may not have to pay the $2 charge if you are a victim of identity theft. A security freeze does not apply to circumstances where you have an existing account relationship and a copy of your credit report and credit score are requested by your existing creditor or its agents or affiliates for certain types of account review, collection, fraud control, or similar activities. If you are actively seeking credit, you should understand that the procedures involved in lifting a security freeze may slow your own applications for credit. You should plan ahead and lift a freeze, either completely if you are shopping around, or specifically for a certain creditor, days before applying for new credit. You have a right to bring a civil action against someone who violates your rights under these laws on security freezes. The action can be brought against a consumer credit reporting agency." Page 1, line 4: Delete "Section 1" Insert "Sec. 4" Renumber the following bill sections accordingly. Page 6, following line 28: Insert a new bill section to read: "* Sec. 6. AS 45.48.160(b) and 45.48.160(d) are repealed." Renumber the following bill section accordingly. REPRESENTATIVE KREISS-TOMKINS objected for purposes of discussion. 2:50:23 PM SARAH PERMAN, Staff, Representative Matt Claman, Alaska State Legislature, explained that earlier this month the United States Senate passed S.2155 [of the 115th Congress, the Economic Growth, Regulatory Relief, and Consumer Protection Act] which included language eliminating consumer fees for placing or removing credit freezes. The change came after the Equifax data breach that is projected to have compromised the personal credit of more than 145 million consumers. Amendment 1, she explained, updates Alaska Statutes to remove credit freeze fees entirely. Under current Alaska law, only victims of identity theft are exempted from paying these fees, which range from $2 to $5 depending upon whether the fees are for placement or removal of a freeze, and Amendment 1 allows that all consumers may request placement or removal of a freeze without charge. She advised that Alaska would be the ninth state to eliminate these fees behind the States of Maine, Indiana, North and South Carolina, Maryland, New York, Colorado, New Jersey, and Washington D.C. Clearly, she said, consumers never request credit agencies to collect their personal data, thereby making it an unreasonable burden for consumers to have to pay to protect their information, she said. This amendment does not impact the $5 fee contained within SB 93, for creating a credit report for a minor or an incapacitated person, it solely eliminates the fee for placing or removing a freeze. 2:51:58 PM REPRESENTATIVE EASTMAN asked the bill sponsor's opinion of Amendment 1. 2:52:17 PM RYNNIEVA MOSS, Staff, Senator John Coghill, Alaska State Legislature, advised that Chair Claman had discussed Amendment 1 with Senator Coghill, and he is in agreement. 2:52:31 PM REPRESENTATIVE KREISS-TOMKINS withdrew his objection. There being no objection, Amendment 1 was adopted. 2:52:55 PM REPRESENTATIVE KREISS-TOMKINS moved to report SB 93, labeled 30- LS0265\O.2, as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSSB 93(JUD) was moved out of the House Judiciary Standing Committee.