HF 2708

as introduced - 90th Legislature (2017 - 2018) Posted on 05/20/2017 10:08am

A bill for an act
relating to commerce; restricting the release of credit information about certain
protected individuals; proposing coding for new law in Minnesota Statutes, chapter
13C.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [13C.035] SECURITY FREEZE FOR PROTECTED CONSUMERS.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings provided.
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new text begin (b) "Protected consumer" means an individual who is one of the following:
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new text begin (1) under the age of 18 years at the time a request for the placement of a security freeze
is made under subdivision 2, paragraph (a); or
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new text begin (2) an individual for whom a guardian or conservator has been appointed.
new text end

new text begin (c) "Record" means a compilation of information about a protected consumer that satisfies
all of the following:
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new text begin (1) the compilation identifies the protected consumer; and
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new text begin (2) the compilation is created by a consumer reporting agency solely for the purpose of
complying with this section.
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new text begin (d) "Representative" means a person who provides to a consumer reporting agency
sufficient proof of authority to act on behalf of a protected consumer.
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new text begin (e) "Security freeze for a protected consumer" means one of the following:
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new text begin (1) if a consumer reporting agency does not have a file pertaining to a protected consumer,
a restriction placed on the protected consumer's record that prohibits, except as provided in
this section, the consumer reporting agency from releasing the protected consumer's record;
or
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new text begin (2) if a consumer reporting agency has a file pertaining to the protected consumer, a
restriction placed on the protected consumer's credit report that prohibits, except as provided
in this section, the consumer reporting agency from releasing the protected consumer's credit
report or any information derived from the protected consumer's credit report.
new text end

new text begin (f) "Sufficient proof of authority" means documentation that shows a representative has
authority to act on behalf of a protected consumer, including any of the following:
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new text begin (1) an order issued by a court;
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new text begin (2) a lawfully executed and valid power of attorney; or
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new text begin (3) a written, notarized statement signed by a representative that expressly describes the
authority of the representative to act on behalf of a protected consumer.
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new text begin (g) "Sufficient proof of identification" means information or documentation that identifies
a protected consumer or a representative of a protected consumer, including any of the
following:
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new text begin (1) a Social Security number or a copy of a Social Security card issued by the Social
Security Administration;
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new text begin (2) a certified or official copy of a birth certificate issued by the entity authorized to
issue the birth certificate; or
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new text begin (3) a copy of a driver's license issued under Minnesota law or under a comparable law
of another state, an identification card issued under Minnesota law or under a comparable
law of another state, or any other government issued identification.
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new text begin Subd. 2. new text end

new text begin Placement of security freeze. new text end

new text begin (a) A consumer reporting agency shall place a
security freeze for a protected consumer if the consumer reporting agency receives a request
from the protected consumer's representative for the placement of the security freeze and
the protected consumer's representative does all of the following:
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new text begin (1) submits the request to the consumer reporting agency at the address or other point
of contact and in the manner specified by the consumer reporting agency;
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new text begin (2) provides to the consumer reporting agency sufficient proof of identification of the
protected consumer and the representative;
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new text begin (3) provides to the consumer reporting agency sufficient proof of authority to act on
behalf of the protected consumer; and
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new text begin (4) pays to the consumer reporting agency a fee as provided in subdivision 4.
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new text begin (b) If a consumer reporting agency does not have a file pertaining to a protected consumer
when the consumer reporting agency receives a request under paragraph (a), the consumer
reporting agency shall create a record for the protected consumer. Upon receiving the request,
the consumer reporting agency shall verify that no file pertains to the protected consumer
by checking for existing files relating to the protected consumer's name and Social Security
number and for existing files relating only to the protected consumer's Social Security
number. A record created under this paragraph may not be used to consider the protected
consumer's creditworthiness, credit standing, credit capacity, character, general reputation,
personal characteristics, or mode of living.
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new text begin (c) Within 30 days after receiving a request that meets the requirements of paragraph
(a), a consumer reporting agency shall place a security freeze for the protected consumer.
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new text begin (d) Unless a security freeze for a protected consumer is removed in accordance with
subdivision 3 or 5, a consumer reporting agency may not release the protected consumer's
credit report, any information derived from the protected consumer's credit report, or any
record created for the protected consumer.
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new text begin (e) A security freeze for a protected consumer placed under paragraph (c) remains in
effect until one of the following occurs:
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new text begin (1) the protected consumer or the protected consumer's representative requests the
consumer reporting agency to remove the security freeze in accordance with subdivision
3; or
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new text begin (2) the security freeze is removed in accordance with subdivision 5.
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new text begin Subd. 3. new text end

new text begin Removal of security freeze. new text end

new text begin (a) If a protected consumer or a protected
consumer's representative wishes to remove a security freeze for the protected consumer,
the protected consumer or the protected consumer's representative shall do all of the
following:
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new text begin (1) submit a request for the removal of the security freeze to the consumer reporting
agency at the address or other point of contact and in the manner specified by the consumer
reporting agency;
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new text begin (2) provide to the consumer reporting agency sufficient proof of identification of the
protected consumer and one of the following:
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new text begin (i) for a request by the protected consumer, proof that the sufficient proof of authority
for the protected consumer's representative to act on behalf of the protected consumer is no
longer valid; or
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new text begin (ii) for a request by the representative of the protected consumer, sufficient proof of
identification of the representative and sufficient proof of authority to act on behalf of the
protected consumer; and
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new text begin (3) pay to the consumer reporting agency a fee as provided in subdivision 4.
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new text begin (b) Within 30 days after receiving a request that meets the requirements of paragraph
(a), the consumer reporting agency shall remove the security freeze for the protected
consumer.
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new text begin Subd. 4. new text end

new text begin Fees. new text end

new text begin (a) Except as provided in paragraph (b), a consumer reporting agency
may not charge a fee for any service performed under this section.
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new text begin (b) A consumer reporting agency may charge a reasonable fee, not exceeding $10, for
each placement or removal of a security freeze for a protected consumer.
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new text begin (c) Notwithstanding paragraph (b), a consumer reporting agency may not charge any
fee under this section if any of the following applies:
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new text begin (1) the protected consumer's representative has obtained a police report or affidavit of
alleged identity fraud against the protected consumer and provides a copy of the report or
affidavit to the consumer reporting agency; or
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new text begin (2) a request for the placement or removal of a security freeze is for a protected consumer
who is under the age of 18 years at the time of the request and the consumer reporting agency
has a file pertaining to the protected consumer.
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new text begin Subd. 5. new text end

new text begin Material misrepresentations. new text end

new text begin A consumer reporting agency may remove a
security freeze for a protected consumer or delete a record of a protected consumer 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.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017.
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