1.1 	A bill for an act
1.2 	relating to consumer protection; providing a procedure
1.3 	to block the reporting of information in a consumer
1.4 	credit report in cases of identity theft; proposing
1.5 	coding for new law in Minnesota Statutes, chapter 13C.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [13C.032] IDENTITY THEFT; CREDIT BLOCKS.
1.8 	(a) If a consumer submits to a credit reporting agency a
1.9 	copy of a valid police report, or a valid investigative report
1.10 	made by an investigator with peace officer status, the consumer
1.11 	credit reporting agency shall promptly and permanently block
1.12 	reporting any information that the consumer alleges appears on
1.13 	his or her credit report as a result of a violation of section
1.14 	609.527 so that the information cannot be reported.  The
1.15 	consumer credit reporting agency shall promptly notify the
1.16 	furnisher of the information that the information has been
1.17 	blocked.  Furnishers of information and consumer credit
1.18 	reporting agencies shall ensure that information is unblocked
1.19 	only upon a preponderance of the evidence establishing the facts
1.20 	required under paragraph (b), clause (1), (2), or (3).
1.21 	(b) The permanently blocked information must be unblocked
1.22 	only if:
1.23 	(1) the information was blocked due to a material
1.24 	misrepresentation of fact by the consumer or fraud;
1.25 	(2) the consumer agrees that the blocked information, or
2.1 	portions of the blocked information, were blocked in error; or 
2.2 	(3) the consumer knowingly obtained possession of goods,
2.3 	services, or money as a result of the blocked transaction or
2.4 	transactions or the consumer should have known that he or she
2.5 	obtained possession of goods, services, or money as a result of
2.6 	the blocked transaction or transactions.
2.7 	(c) If blocked information is unblocked pursuant to this
2.8 	subdivision, the consumer must be promptly notified.  The prior
2.9 	presence of the blocked information in the consumer credit
2.10 	reporting agency's file on the consumer is not evidence of
2.11 	whether the consumer knew or should have known that he or she
2.12 	obtained possession of any goods, services, or money.  For the
2.13 	purposes of this subdivision, fraud may be demonstrated by
2.14 	circumstantial evidence.  In unblocking information pursuant to
2.15 	this subdivision, furnishers and consumer credit reporting
2.16 	agencies are subject to their respective requirements pursuant
2.17 	to this chapter regarding the completeness and accuracy of
2.18 	information.