Consumer Report Security Freeze 2011 Legislation

Last Updated: December 15, 2011

NCSL Staff Contact: Heather Morton, Denver, (303) 364-7700

A consumer report security freezes limits a consumer reporting agency from releasing a credit report or any information from the report without authorization from the consumer. If a person suspects that he or she has been victimized by identity theft, a consumer report security freeze can help the person track whether an identity thief is using the person’s information to set up bogus accounts.

During the 2011 legislative session, 15 bills have been introduced from eight states.

Related NCSL Web pages:

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STATE
BILL SUMMARY
Alabama

H.B. 173
This bill provides for procedures for placing, removing, and temporarily lifting a security freeze on a consumer credit account. This bill provides for fees and fines for violations. This bill provides for notice to consumers.

H.B. 313
Passed House 4/7/11
Relates to protection from identity theft; provides for security freezes on consumer credit accounts; provides for definitions; provides for procedures for placing, removing, and temporarily lifting a security freeze; provides for fees; provides for fines for violations; and provides for notice to consumers.

Alaska
none
Arizona
none
Arkansas
none
California
none
Colorado
none
Connecticut
none
Delaware
none
District of Columbia
none
Florida

S.B. 120
Died in committee 5/7/11
Requires the Department of Corrections to provide each inmate in a correctional facility the opportunity to place a security freeze on his or her consumer report. Requires the department, at the request of the inmate, to provide the appropriate forms to the inmate to initiate the security freeze process. Requires that the inmate pay all fees and expenses incurred in the application for a security freeze.

Georgia
none
Guam
none
Hawaii

H.B. 678
To conference committee 4/15/11
Requires a government agency that maintains personal information systems to include mandatory training programs for agency personnel; requires a business that maintains personal information to implement an information security program; adds a definition of "credit reporting agency"; amends the definition of "security breach" to include inadvertent, unauthorized disclosure of unencrypted or unredacted records or data containing personal information; requires a notice of security breach to include toll-free contact telephone numbers and addresses for the major credit reporting agencies; requires a government agency to submit a written report to the information privacy and security council within twenty days after discovery of a security breach; requires the information privacy and security council to be responsible for coordinating the implementation of security breach guidelines by government agencies; includes a victim of a security breach to those residents entitled to free security freeze services; appropriates unspecified funds for the information privacy and security council for positions and security tools.

S.B. 796
Passed Senate 3/8/11
Requires a business that maintains personal information about residents of Hawaii to implement a comprehensive written information security program; exempts financial institutions subject to certain federal guidelines; requires that a consumer credit reporting agency not charge a victim of identity theft or a security breach a fee for placing, lifting, or removing a security freeze on a credit report.

Idaho
none
Illinois
none
Indiana
none
Iowa
none
Kansas
none
Kentucky
none
Louisiana
none
Maine
none
Maryland
none
Massachusetts

H.B. 118
Repeals certain identity theft and consumer reporting laws, including provisions regarding requesting a consumer report security freeze.

H.B. 126
Relates to the protection of personal information in consumer transactions and consumer report security freezes.

Michigan
none
Minnesota
none
Mississippi

H.B. 483
Died in committee 2/1/11
Amends §75-24-201 to delete the requirement that a consumer must provide to a consumer reporting agency a law enforcement report regarding the unlawful use of the consumer's personal information before the consumer may have a security freeze placed on his or her consumer file; codifies new §75-24-216 to provide that any person whose property or person is injured by reason of a violation of the security freeze statutes may sue for civil damages; amends §75-24-5 to provide that any violation of the security freeze statutes shall be considered as an unfair or deceptive trade practice.

H.B. 486
Died in committee 2/1/11
Authorizes a consumer to place a security freeze on his or her credit report, which will prohibit a consumer reporting agency from releasing the consumer's credit report or any information from it without the express authorization of the consumer; requires consumer reporting agencies to place a security freeze on a consumer's credit report within five business days after receiving a written request from the consumer; provides that a security freeze will remain in place until the consumer requests that the security freeze be removed; requires consumer reporting agencies to remove a security freeze within three business days of receiving a request for removal from the consumer; provides for certain exceptions to the requirements of this act; provides that any person whose property or person is injured by reason of a violation of this act may sue for civil damages; amends §75-24-5 to conform to the preceding provisions; repeals §§75-24-201 through 75-24-217, which are the current security freeze statutes.

H.B. 564
Died in committee 2/1/11
Amends §75-24-201 to delete the requirement that a consumer must provide to a consumer reporting agency a law enforcement report regarding the unlawful use of the consumer's personal information before the consumer may have a security freeze placed on his or her consumer file; provides that a security freeze shall remain in effect until the consumer requests that the security freeze be removed; provides that a consumer reporting agency may not charge any fee to a victim of identity theft who has submitted a copy of a valid report or complaint with a law enforcement agency about the unlawful use of the victim's identifying information by another person; provides that the unique personal identification number or password provided by a consumer reporting agency to a consumer to authorize a removal or temporary lifting of the security freeze may not be the consumer's Social Security number; creates new §75-24-202 to provide that notice be provided to a consumer whenever the consumer is required to receive a summary of rights required under the federal fair credit reporting act, stating the Mississippi consumers have the right to obtain a security freeze; prescribes the contents of the notice; amends §75-24-207 to authorize a consumer reporting agency to charge a consumer a fee to remove a security freeze or temporarily lift a security freeze, except for a consumer who is victim of identity theft who has submitted a copy of a valid investigative or incident report or complaint with a law enforcement agency about the unlawful use of the victim's identifying information by another person; amends §75-24-209 to provide that a security freeze does not apply to a consumer report provided to certain additional persons or entities; creates new §30 75-24-216 to provide that any person whose property or person is injured by reason of a violation of the security freeze statutes may sue for civil damages and injunctive relief; amends §75-24-5 to provide that any violation of the security freeze statutes shall be considered as an unfair or deceptive trade practice.

H.B. 1261
Died in committee 2/1/11
Amends §75-24-201 to delete the requirement that a consumer must provide to a consumer reporting agency a law enforcement report regarding the unlawful use of the consumer's personal information before the consumer may have a security freeze placed on his or her consumer file.

Missouri
none
Montana

H.B. 500
Died in committee 4/28/11
Makes nonsubstantive amendments to the provisions regarding the temporary lifting of a security freeze.

S.B. 60
Signed by governor 3/23/11, Chapter 42
Allows a parent, guardian, or conservator to request a security freeze for a minor, incapacitated person, or protected person with respect to credit reports.

Nebraska
none
Nevada

A.B. 331
Under existing law, a person who complies with the requirements of the Fair Credit Reporting Act, 15 U.S.C. §§1681 et seq., and chapter 598C of NRS is allowed to obtain a consumer report for purposes relating to the employment of the consumer. This bill prohibits a person from procuring a consumer report for purposes of evaluating a consumer for employment, promotion, reassignment or retention as an employee unless: (1) the use of the report is required or authorized by state or federal law; (2) the person reasonably believes that the consumer has engaged in specific illegal activity which is likely to be reflected in the consumer report; or (3) the information in the report is substantially related to the evaluation of the consumer’s likely performance of the duties of the particular position for which he or she is being evaluated. This bill also provides that a person who is prohibited from procuring a consumer report for purposes related to employment is also prohibited from requesting a consumer to furnish his or her consumer report to the person or to authorize a reporting agency to furnish the report for those purposes. Existing law provides that if a consumer places a security freeze on his or her file maintained by a credit reporting agency, the agency is not allowed to release the consumer report without the consumer’s consent except for certain purposes, which include certain purposes relating to employment of the consumer. (NRS 598C.350, 598C.380) This bill revises the scope of that exception to conform with this bill.

New Hampshire
none
New Jersey
none
New Mexico
none
New York
none
North Carolina
none
North Dakota
none
Ohio
none
Oklahoma
none
Oregon
none
Pennsylvania
none
Puerto Rico
none
Rhode Island
none
South Carolina
none
South Dakota
none
Tennessee
none
Texas
none
Utah
none
Vermont
none
Virginia
none
Washington
none
West Virginia
none
Wisconsin

S.B. 283
This bill prohibits the possession, by a person who is incarcerated in a prison or who resides in a mental health facility, of a correctional employee’s personal identifying information or a document relating to the employee’s personal identifying information. A person who violates this prohibition is guilty of a Class H felony. Under the bill, a correctional employee who is the victim of an unauthorized possession of his or her personal identifying information or documents may obtain a security freeze on his or her credit reports free of charge, if he or she submits proof to a credit reporting agency that he or she reported the unauthorized possession to a law enforcement agency.

Wyoming
none

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