Consumer Report Security Freeze 2013 Legislation

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Heather Morton, Denver, 303-364-7700

Security Breach Updated Sept. 23, 2014

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.

The chart below lists state legislation introduced or pending in 15 states during the 2013 legislative session relating to consumer report security freezes.

Delaware, Michigan and Wisconsin enacted legislation to allow parents or guardians to place security freezes on the credit reports for children or incapacitated adults. Illinois and Texas followed suit for children. Maryland expanded security freezes for children in the custody of departments of social services. Delaware reduced the fees for security freezes for senior citizens.

DE | FL | HI | IL | ME | MD | MA | MI | MN | NY | OR | PA | SC | TX | WI

STATES	BILL SUMMARY
Alabama	none
Alaska	none
Arizona	none
Arkansas	none
California	none
Colorado	none
Connecticut	none
Delaware	H.B. 64 Signed by governor 6/19/13, Chapter 43 This bill allows parents to "freeze" their minor children’s credit at any time to protect them from identity theft. This bill also allows for credit to be frozen for an incapacitated person by their guardian.
Delaware	S.B. 92 Signed by governor 7/15/13, Chapter 109 This bill reduces the fee for an initial security freeze from $20 to $10, and from $20 to $5 for senior citizens. This bill also adds agencies and organizations exempted from placing a security freeze.
District of Columbia	none
Florida	H.B. 493 Passed House 4/17/13 Authorizes the representative of protected consumers to place security freeze; requires a consumer reporting agency to establish a record if necessary to institute a security freeze; requires a consumer reporting agency to place a security freeze and provide written notification within a specified period; prohibits a consumer reporting agency from implying that a security freeze reflects negative credit information; provides procedures for the removal of a security freeze; provides for applicability; authorizes fees; provides exemptions; provides for violations; provides for penalties and civil remedies; provides consumer reporting agency disclosure requirements for a protected consumer security freeze.
Florida	S.B. 566 Died in committee 5/3/13 Authorizes the representative of a protected consumer to place a security freeze on the protected consumer’s consumer record; requires a consumer reporting agency to provide written confirmation of a security freeze within a specified period; prohibits a consumer reporting agency from stating or implying that a security freeze reflects a negative credit history or rating; requires a consumer reporting agency to remove a security freeze under specified conditions, etc.
Georgia	none
Guam	not available
Hawaii	H.B. 712 Authorizes the parent or legal guardian of a minor child to place a security freeze on the minor child's credit report.
Idaho	none
Illinois	H.B. 2785 Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that a consumer reporting agency may not include in a consumer credit report any information based upon obligations incurred by a consumer during the time the consumer is a resident of a facility as defined under the Nursing Home Care Act. Prohibits the imposition of fees for a credit report security freeze or for the removal or temporary lift of a freeze.
Illinois	H.B. 3380 Signed by governor 8/16/13, Public Act 98-0486 Amends the Consumer Fraud and Deceptive Business Practices Act; provides that the freeze may be requested by the holder of a power of attorney that complies with the State Power of Attorney Act and a guardian of a minor under the Minors Article of the Probate Act; authorizes a consumer reporting agency to require proper identification and documents from the person making the request; prohibits a temporary lifting of a juvenile credit freeze; allows security freeze request by guardians for certain juveniles.
Indiana	none
Iowa	none
Kansas	none
Kentucky	none
Louisiana	none
Maine	L.D. 1410 Signed by governor 6/11/13, Public Chapter 228 Incorporates federal fair credit reporting laws into state law while preserving enhanced protections found in current state law; requires consumer reporting agencies to adopt reasonable procedures for meeting the needs of commerce for consumer credit, personnel, insurance and other information in a manner that is fair and equitable to the consumer, with regard for confidentiality, accuracy, relevancy and proper use of this information; relates to a security freeze and a supervised financial organization.
Maryland	H.B. 1297 Signed by governor 5/2/13, Chapter 330 S.B. 897 Signed by governor 5/2/13, Chapter 329 Requires the Department of Human Resources to request a security freeze on the consumer report or a specified record of specified protected consumers who are minor children in the custody of a local department of social services who have been placed in a foster care setting in accordance with specified application procedures; requires a consumer reporting agency to place a security freeze for a protected consumer under specified circumstances and within a specified period of time.
Massachusetts	H.B. 298 Relates to the protection of personal information in consumer transactions.
Michigan	S.B. 174 Signed by governor 12/21/13, Public Act 229 The bill enacts the "Security Freeze Act." Requires a consumer reporting agency to place a security freeze on the credit report of a consumer or a protected consumer, at the request of the consumer or the protected consumer's authorized representative. Prohibits a consumer reporting agency from releasing a consumer's credit report or any information from it, without the consumer's permission, while a freeze is in place. Requires a consumer reporting agency to remove a consumer's security freeze, at the request of the consumer, protected consumer, or authorized representative. Allows a consumer to have his or her security freeze temporarily lifted. Allows a consumer reporting agency to charge up to $10 for placing, removing, or temporarily lifting a security freeze, unless a consumer or protected consumer has filed a police report of alleged identity theft. Specifies entities and uses to which the security freeze requirements do not apply.
Minnesota	H.F. 836 Authorizes certain representatives of protected consumers to lift or remove credit freezes.
Mississippi	none
Missouri	none
Montana	none
Nebraska	none
Nevada	none
New Hampshire	none
New Jersey	none
New Mexico	none
New York	S.B. 3278 Amends the General Business Law; implements provisions to protect credit reports of certain consumers.
North Carolina	none
North Dakota	none
N. Mariana Islands	not available
Ohio	none
Oklahoma	none
Oregon	S.B. 574 Signed by governor 6/13/13, Chapter 415 Permits consumer to request that consumer reporting agency place, temporarily lift or remove security freeze on protected consumer's consumer report if consumer provides sufficient proof of consumer's authority to act on protected consumer's behalf.
Pennsylvania	H.B. 713 Amends the Credit Reporting Agency Act, provides for findings and intent; and further provides for definitions, for security freeze, for consumer reporting agency, for temporary access or removal of security freeze and for fees.
Puerto Rico	none
Rhode Island	none
South Carolina	H.B. 3628 Adds §37-20-161, so as to provide for certain measures to safeguard a class of protected consumers from becoming victims of identity theft. Allows representatives with sufficient proof of authority to place a preemptive security freeze on protected consumer's credit reports. Provides limitations. Provides requirements to implement a security freeze. Provides for the duration and extent of a security freeze, and provides terms for removal of a security freeze on a protected consumer's credit report or record.
South Carolina	S.B. 148 Adds §37-20-161 to provide for certain measures to safeguard a class of "protected consumers" from becoming victims of identity theft, to allow representatives, providing sufficient proof of authority, to place a preemptive security freeze on protected consumer's credit reports, provides the limitations of this section, provides requirements to implement a security freeze, provides for the duration and extent of a security freeze, and provides terms for removal of a security freeze on a protected consumer's credit report or record.
South Dakota	none
Tennessee	none
Texas	H.B. 1087 Laid on table 5/3/13 Relates to the authority of a parent or legal guardian to establish a consumer file for a child or adult ward and act on the child's or adult ward's behalf with a consumer reporting agency.
Texas	S.B. 60 Signed by governor 5/18/13, Chapter 64 The bill amends the Business & Commerce Code to require a consumer reporting agency to place a security freeze on the consumer file of a protected consumer, defined as a resident of Texas who is younger than 16 years of age, if the agency receives a licit request from the protected consumer's representative for the placement of the security freeze. If the agency does not have a consumer file for the protected consumer, the agency must create a record for the protected consumer and subsequently place a security freeze on the record within a certain time frame. The bill prohibits the creation or use of the record in considering the protected consumer's creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living for certain credit-related purposes. The bill prohibits a consumer reporting agency from releasing any consumer report relating to the protected consumer, any information derived from the report, or any record created for the protected consumer unless the security freeze is removed. The bill sets out conditions and procedures for removal of a freeze by a protected consumer or the protected consumer's representative and authorizes an agency to charge a reasonable fee of up to $10 for each placement or removal of a freeze except under certain circumstances. The bill authorizes an agency to remove a security freeze or delete a record if the security freeze was placed or the record was created based on a material misrepresentation of fact by the protected consumer or the protected consumer's representative. The exclusive remedy for a violation of the bill's provisions is a suit filed by the attorney general. The bill exempts certain persons and entities from its prohibitions against the use of a protected consumer's consumer report or record.
Utah	none
Vermont	none
Virginia	none
Virgin Islands	not available
Washington	none
West Virginia	none
Wisconsin	A.B. 248 Signed by governor 12/12/13, Act 78 Relates to consumer reporting agencies; provides for certain security freezes by allowing representatives to obtain security freezes on behalf of protected consumers; defines protected customer to include individuals under 16 years old or individuals for whom a guardian or conservator has been appointed; defines representative to include persons acting under a power of attorney, a court order or a notarized statement of authority; sets forth related procedures.
Wisconsin	S.B. 283 This bill allows a “representative” of a “protected individual” to obtain a security freeze on the protected individual’s credit report. A “protected individual” is an individual: 1) who is less than 18 years of age (minor); 2) for whom a guardian of the estate or a conservator has been appointed; or 3) who has executed a durable power of attorney. A “representative” is: 1) a parent who has legal custody of a minor, the guardian or legal custodian of a minor, or a person delegated care and custody of a minor; 2) a guardian of the estate or conservator appointed for a protected individual; or 3) an agent of an individual under a durable power of attorney. In general, the same procedures and requirements apply to a representative acting on behalf of a protected individual as apply when an individual acts on his or her own behalf. Under the bill, if a protected individual does not have a credit report, the representative may request that a credit reporting agency create a record for the protected individual and treat that record in the same manner as a credit report for purposes of placing a security freeze. If a representative of a minor requests a security freeze for the minor, when the minor reaches age 18, the credit reporting agency must remove the security freeze and may thereafter honor requests only from the individual who was formerly a minor, not from the representative. If any other representative makes a request for a security freeze for a protected individual, and the guardianship, conservatorship, or durable power of attorney with respect to the protected individual is terminated, the representative must notify the credit reporting agency. Upon receiving this notice, or if the credit reporting agency’s own records show such a termination, the credit reporting agency may not honor requests from the representative and any further requests or actions with respect to the individual who was formerly a protected individual must be made by that individual or, if there is a successor representative, by the successor representative. If there is no successor guardianship, conservatorship, or durable power of attorney, the credit reporting agency must remove the security freeze when the credit reporting agency has information that the guardianship, conservatorship, or durable power of attorney is terminated.
Wyoming	none