HF 4000

as introduced - 89th Legislature (2015 - 2016) Posted on 05/11/2016 08:23am

A bill for an act
relating to consumer protection; regulating security freezes on consumer reports;
providing for payment of fees; amending Minnesota Statutes 2014, section
13C.016, subdivisions 1, 8.

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

Section 1.

Minnesota Statutes 2014, section 13C.016, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section and sections 13C.017 to
13C.019, the terms defined in this section have the meanings given.

(b) "Security freeze" means a notice placed in a consumer's consumer report, at the
request of the consumer and subject to certain exceptions, that prohibits the consumer
reporting agency from releasing the consumer report or any information from it, in
connection with the extension of credit or the opening of a new account, without the
express authorization of the consumer. If a security freeze is in place, information from a
consumer's consumer report may not be released to a third party, in connection with the
extension of credit or the opening of an account, without prior express authorization
from the consumer. This paragraph does not prevent a consumer reporting agency from
advising a third party that a security freeze is in effect with respect to the consumer report.

(c) new text begin "Victim of a data breach" means a consumer who has a notice that there has
been a breach of the security system involving the consumer's personal information,
as provided in section 325E.61.
new text end

new text begin (d) new text end "Victim of identity theft" means a consumer who has a copy of a valid police
report evidencing that the consumer has alleged to be a victim of identity theft as defined
in section 609.527.

Sec. 2.

Minnesota Statutes 2014, section 13C.016, subdivision 8, is amended to read:

Subd. 8.

Fees.

(a) A consumer reporting agency may charge a fee of $5 for placing,
temporarily lifting, or removing a security freeze unless:

(1) the consumer is a victim of identity theft as defined in subdivision 1, paragraph
deleted text begin (c); deleted text end new text begin (d), new text end and

deleted text begin (2) deleted text end the consumer provides the consumer reporting agency with a valid copy of a
police report or a police case number documenting the identity theft new text begin ; or
new text end

new text begin (2) the consumer is a victim of a data breach as defined in subdivision 1, paragraph
(c), and the consumer provides the consumer reporting agency with a copy of a notice that
there has been a breach of the security system new text end .

(b) In addition to the charge, if any, permitted under paragraph (a), a consumer
may be charged no more than $5 if the consumer fails to retain the original personal
identification number given to the consumer by the agency, but the consumer may not
be charged for a onetime reissue of the same or a new personal identification number.
The consumer may be charged no more than $5 for subsequent instances of loss of the
personal identification number.

(c) A consumer who makes a written request by mail may pay any fee charged
pursuant to this subdivision by check, money order, or credit card. A consumer who
makes a request by telephone or other electronic media may pay any fee charged pursuant
to this subdivision by credit card.