Legislature(2017 - 2018)GRUENBERG 120
03/30/2018 01:00 PM House JUDICIARY
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| Audio | Topic |
|---|---|
| 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.