1.1 	A bill for an act
1.2 	relating to consumer protections; reducing identity theft and assisting its 
1.3 	victims; providing penalties;amending Minnesota Statutes 2004, sections 
1.4 	13.05, subdivision 5; 138.17, subdivision 7; 609.527, by adding a subdivision; 
1.5 	Minnesota Statutes 2005 Supplement, section 325E.61, subdivisions 1, 4; 
1.6 	proposing coding for new law in Minnesota Statutes, chapters 13C; 325E; 325G; 
1.7 	609.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. Minnesota Statutes 2004, section 13.05, subdivision 5, is amended to read:
1.10 		Subd. 5.Data protection. The responsible authority shall (1) establish procedures 
1.11 	to assure that all data on individuals is accurate, complete, and current for the purposes for 
1.12 	which it was collected; and (2) establish appropriate security safeguards for all records 
1.13 	containing data on individuals. When confidential or private data is being disposed of, 
1.14 	"appropriate security safeguards" means that the data is destroyed in a way that prevents 
1.15 	its contents from being determined.

1.16 	Sec. 2. [13C.015] SECURITY FREEZES ON CREDIT REPORTS REGARDING 
1.17 	MINORS.
1.18 		Subdivision 1.Definitions. (a) For purposes of this section, the terms defined in this 
1.19 	subdivision have the meanings given them. 
1.20 	(b) "Guardian" means a guardian as defined under section 524.5-102, subdivision 5. 
1.21 	(c) "Minor" means an individual under the age of 18 years. 
1.22 	(d) "Parent" means a person who has legal and physical custody of a child. 
2.1 	(e) "Security freeze" means a situation in which a consumer reporting agency will 
2.2 	not provide a consumer report about a specific consumer to anyone, without a request from 
2.3 	the parent or guardian specifying the entity to whom a consumer report may be provided.
2.4 		Subd. 2.Security freeze required at request of parent or guardian of minor.
 2.5 	(a) A consumer reporting agency shall impose a security freeze on the credit reports of 
2.6 	a minor at the written request of a parent or guardian of the minor. The written request 
2.7 	must include: 
2.8 	(1) the full name and address, date of birth, and Social Security number of the minor; 
2.9 	(2) the full name and address of the parent or guardian making the request; 
2.10 	(3) a statement that the requesting parent or guardian is a custodial parent or 
2.11 	guardian of the minor; and 
2.12 	(4) the signature of the requesting parent or guardian and the date of the signature. 
2.13 	(b) The requesting parent or guardian need not give a reason for the request. 
2.14 	(c) The security freeze must remain in place until the minor reaches the age of 18 
2.15 	years, unless terminated sooner at the request of the parent or guardian who requested 
2.16 	the freeze. 
2.17 	(d) The security freeze must terminate automatically when the minor reaches of 
2.18 	the age of 18 years.
2.19 		Subd. 3.Deadlines for imposition of freeze and notice. (a) The consumer 
2.20 	reporting agency must impose the freeze no later than 15 days after its receipt of a request 
2.21 	that complies with this section. 
2.22 	(b) The consumer reporting agency must notify the requesting person of its 
2.23 	imposition of the security freeze or of the request??a??a??s insufficiency under this section no 
2.24 	later than 20 days after its receipt of the request.

2.25 	EFFECTIVE DATE. This section is effective August 1, 2006.

2.26 	Sec. 3. Minnesota Statutes 2004, section 138.17, subdivision 7, is amended to read:
2.27 		Subd. 7.Records management program. A records management program for the 
2.28 	application of efficient and economical management methods to the creation, utilization, 
2.29 	maintenance, retention, preservation, and disposal of official records shall be administered 
2.30 	by the commissioner of administration with assistance from the director of the historical 
2.31 	society. The State Records Center which stores and services state records not in state 
2.32 	archives shall be administered by the commissioner of administration. The commissioner 
2.33 	of administration is empowered to (1) establish standards, procedures, and techniques for 
2.34 	effective management of government records, (2) make continuing surveys of paper work 
2.35 	operations, and (3) recommend improvements in current records management practices 
3.1 	including the use of space, equipment, and supplies employed in creating, maintaining, 
3.2 	preserving and disposing of government records. It shall be the duty of the head of each 
3.3 	state agency and the governing body of each county, municipality, and other subdivision 
3.4 	of government to cooperate with the commissioner in conducting surveys and to establish 
3.5 	and maintain an active, continuing program for the economical and efficient management 
3.6 	of the records of each agency, county, municipality, or other subdivision of government. 
3.7 	When requested by the commissioner, public officials shall assist in the preparation of 
3.8 	an inclusive inventory of records in their custody, to which shall be attached a schedule, 
3.9 	approved by the head of the governmental unit or agency having custody of the records 
3.10 	and the commissioner, establishing a time period for the retention or disposal of each 
3.11 	series of records. When the schedule is unanimously approved by the records disposition 
3.12 	panel, the head of the governmental unit or agency having custody of the records may 
3.13 	dispose of the type of records listed in the schedule at a time and in a manner prescribed 
3.14 	in the schedule for particular records which were created after the approval. A list of 
3.15 	records disposed of pursuant to this subdivision shall be maintained by the governmental 
3.16 	unit or agency. When records containing confidential data as defined in section 13.02, 
3.17 	subdivision 3, or private data as defined in section 13.02, subdivision 12, are being 
3.18 	disposed of under this subdivision, the records must be destroyed in a way that prevents 
3.19 	their contents from being determined.

3.20 	Sec. 4. Minnesota Statutes 2005 Supplement, section 325E.61, subdivision 1, is 
3.21 	amended to read:
3.22 		Subdivision 1.Disclosure of personal information; notice required. (a) Any 
3.23 	person or business that conducts business in this state, and that owns or licenses data that 
3.24 	includes personal information, shall disclose any breach of the security of the system 
3.25 	following discovery or notification of the breach in the security of the data to any resident 
3.26 	of this state whose unencrypted personal information was, or is reasonably believed to 
3.27 	have been, acquired by an unauthorized person. The disclosure must be made in the most 
3.28 	expedient time possible and without unreasonable delay, consistent with the legitimate 
3.29 	needs of law enforcement, as provided in paragraph (c), or with any measures necessary 
3.30 	to determine the scope of the breach, identify the individuals affected, and restore the 
3.31 	reasonable integrity of the data system.
3.32 	(b) Any person or business that maintains data that includes personal information 
3.33 	that the person or business does not own shall notify the owner or licensee of the 
3.34 	information of any breach of the security of the data immediately following discovery, 
4.1 	if the personal information was, or is reasonably believed to have been, acquired by 
4.2 	an unauthorized person.
4.3 	(c) The notification required by this section may be delayed to a date certain if a law 
4.4 	enforcement agency affirmatively determines that the notification will impede a criminal 
4.5 	investigation.
4.6 	(d) For purposes of this section, "breach of the security of the system" means 
4.7 	successful unauthorized acquisition of computerized data that compromises the security, 
4.8 	confidentiality, or integrity of personal information maintained by the person or business. 
4.9 	Good faith acquisition of personal information by an employee or agent of the person or 
4.10 	business for the purposes of the person or business is not a breach of the security system, 
4.11 	provided that the personal information is not used or subject to further unauthorized 
4.12 	disclosure.
4.13 	(e) For purposes of this section, "personal information" means an individual's first 
4.14 	name or first initial and last name in combination with any one or more of the following 
4.15 	data elements, when either the name or the data elements is not encrypted:
4.16 	(1) Social Security number;
4.17 	(2) driver's license number or Minnesota identification card number; or
4.18 	(3) account number or credit or debit card number, in combination with any required 
4.19 	security code, access code, or password that would permit access to an individual's 
4.20 	financial account.
4.21 	(f) For purposes of this section, "personal information" does not include publicly 
4.22 	available information that is lawfully made available to the general public from federal, 
4.23 	state, or local government records.
4.24 	(g) For purposes of this section, "notice" may be provided by one of the following 
4.25 	methods:
4.26 	(1) written notice to the most recent available address the person or business has 
4.27 	in its records;
4.28 	(2) electronic notice, if the notice provided is consistent with the provisions 
4.29 	regarding electronic records and signatures in United States Code, title 15, section 7001; or
4.30 	(3) substitute notice, if the person or business demonstrates that the cost of providing 
4.31 	notice would exceed $250,000, or that the affected class of subject persons to be notified 
4.32 	exceeds 500,000, or the person or business does not have sufficient contact information. 
4.33 	Substitute notice must consist of all of the following:
4.34 	(i) e-mail notice when the person or business has an e-mail address for the subject 
4.35 	persons;
5.1 	(ii) conspicuous posting of the notice on the Web site page of the person or business, 
5.2 	if the person or business maintains one; and
5.3 	(iii) notification to major statewide media.
5.4 	(h) Notwithstanding paragraph (g), a person or business that maintains its own 
5.5 	notification procedures as part of an information security policy for the treatment of 
5.6 	personal information and is otherwise consistent with the timing requirements of this 
5.7 	section, shall be deemed to be in compliance with the notification requirements of this 
5.8 	section if the person or business notifies subject persons in accordance with its policies in 
5.9 	the event of a breach of security of the system.

5.10 	Sec. 5. Minnesota Statutes 2005 Supplement, section 325E.61, subdivision 4, is 
5.11 	amended to read:
5.12 		Subd. 4.Exemption. This section does not apply to any "financial institution" 
5.13 	as defined by United States Code, title 15, section 6809(3)~~, and to entities subject to~~ 
5.14 	~~the federal privacy and security regulations adopted under the federal Health Insurance~~ 
5.15 	~~Portability and Accountability Act of 1996, Public Law 104-191~~.

5.16 	Sec. 6. [325E.62] RESPONSIBLE DISPOSAL OF PERSONAL INFORMATION.
5.17 	(a) Any individual or business entity, including any nonprofit entity, that conducts 
5.18 	business in this state must dispose of its paper or electronic records containing personal 
5.19 	information regarding customers, employees, and other persons only in a manner that 
5.20 	prevents their contents from being determined.
5.21 	(b) For purposes of this section, "personal information" has the meaning given in 
5.22 	section 325E.61, subdivision 1.
5.23 	(c) The attorney general shall enforce this section under section 8.31.

5.24 	Sec. 7. [325E.63] CREDIT FREEZE REGARDING MINORS.
5.25 		Subdivision 1.Definitions. (a) For purposes of this section, the terms defined in this 
5.26 	subdivision have the meanings given them.
5.27 	(b) "Creditor" means a person or entity doing business in this state.
5.28 	(c) "Guardian" means a guardian as defined under section 524.5-102, subdivision 5. 
5.29 	(d) "Minor" means an individual under the age of 18 years. 
5.30 	(e) "Parent" means a person who has legal and physical custody of a child. 
5.31 		Subd. 2.Credit freeze. No creditor shall offer or provide credit to a minor except 
5.32 	at the written request of the parent or guardian of the minor, until the minor reaches the 
5.33 	age of 18 years.

6.1 	Sec. 8. [325G.052] CREDIT CARD OFFERS AND SOLICITATIONS; ADDRESS 
6.2 	VERIFICATIONS.
6.3 	(a) A credit card issuer that mails an offer or solicitation to receive a credit card and, 
6.4 	in response, receives a completed application for a credit card that lists an address that is 
6.5 	different from the address on the offer or solicitation shall verify the change of address by 
6.6 	contacting the person to whom the solicitation or offer was mailed.  
6.7 	(b) Notwithstanding any other provision of law, a person to whom an offer or 
6.8 	solicitation to receive a credit card is made is not liable for the unauthorized use of a 
6.9 	credit card issued in response to that offer or solicitation if the credit card issuer does not 
6.10 	verify the change of address pursuant to paragraph (a) before the issuance of the credit 
6.11 	card, unless the credit card issuer proves that this person actually incurred the charge 
6.12 	on the credit card.  
6.13 	(c) When a credit card issuer receives a written or oral request for a change of the 
6.14 	cardholder's billing address and then receives a written or oral request for an additional 
6.15 	credit card within ten days after the requested address change, the credit card issuer shall 
6.16 	not mail the requested additional credit card to the new address or, alternatively, activate 
6.17 	the requested additional credit card, unless the credit card issuer has verified the change 
6.18 	of address.

6.19 	Sec. 9. Minnesota Statutes 2004, section 609.527, is amended by adding a subdivision 
6.20 	to read:
6.21 		Subd. 8.Identity theft passport. (a) For purposes of this subdivision: 
6.22 	(1) "identity theft" means a violation of subdivision 2; and 
6.23 	(2) "identity theft passport" means a card or certificate issued by the attorney general 
6.24 	that identifies a person who has filed with a local or state law enforcement agency in this 
6.25 	state a signed written report that the person is a victim of an alleged crime of identity theft. 
6.26 	(b) A person who is a victim of identity theft in this state, or who is a resident of 
6.27 	this state, and who has filed with a law enforcement agency in this state a signed written 
6.28 	report stating that the person is a victim of identity theft, may apply for an identity theft 
6.29 	passport through any law enforcement agency of this state. 
6.30 	(c) A law enforcement agency that receives an application for an identity theft 
6.31 	passport shall submit the application and a copy of the written report to the attorney 
6.32 	general for processing and issuance of an identity theft passport to the applicant. 
6.33 	(d) The attorney general, in cooperation with a law enforcement agency, may issue 
6.34 	an identity theft passport under this subdivision to a victim of identity theft. 
7.1 	(e) A person who has been issued an identity theft passport under this subdivision 
7.2 	may present it to: 
7.3 	(1) a law enforcement agency to aid in the investigation of identity theft or to help 
7.4 	prevent the arrest or prosecution of the person for an offense committed by another person 
7.5 	using the identity of the holder of the passport; or 
7.6 	(2) a creditor to aid in the investigation of any fraudulent account opened in the 
7.7 	person's name or of any fraudulent charge made against an account in the person's name. 
7.8 	(f) A law enforcement agency or creditor that is presented with an identity theft 
7.9 	passport has sole discretion to accept or reject the passport.  In making that determination, 
7.10 	the law enforcement agency or creditor may consider the surrounding circumstances and 
7.11 	available information regarding the alleged identity theft. 
7.12 	(g) An application for an identity theft passport, including any supporting 
7.13 	documentation, is private data on individuals as defined in section 13.02, subdivision 12, 
7.14 	except that it may be released to a law enforcement agency in this or another state.

7.15 	EFFECTIVE DATE. This section is effective August 1, 2006.

7.16 	Sec. 10. [609.822] SKIMMING CARD FRAUD.
7.17 		Subdivision 1.Short title. This section shall be cited as the "Anti-Skimming Act."
7.18 		Subd. 2.Definitions. As used in this section, the following terms have the meanings 
7.19 	given them.  
7.20 	(a) "Card" means a payment card or a government-issued identification card.
7.21 	(b) "Government-issued identification card" means a driver's license, state 
7.22 	identification card, passport, Social Security card, or other government-issued card that 
7.23 	contains personally identifiable information about the person to whom it was issued, and 
7.24 	that permits the user to obtain, purchase, or receive goods, services, money, or anything of 
7.25 	value from a merchant.
7.26 	(c) "Merchant" means an owner or operator of a retail mercantile establishment or an 
7.27 	agent, employee, lessee, consignee, officer, director, franchisee, or independent contractor 
7.28 	of the owner or operator, who receives from an authorized user of a card, or from someone 
7.29 	the person believes to be an authorized user, a card or information from a card, or what the 
7.30 	person believes to be a card or information from a card, as the instrument for obtaining, 
7.31 	purchasing, or receiving goods, services, money, or anything of value from the person.
7.32 	(d) "Payment card" means a credit card, charge card, debit card, or any other card 
7.33 	that is issued to an authorized card user and that allows the user to obtain, purchase, or 
7.34 	receive goods, services, money, or anything of value from a merchant. 
8.1 	(e) "Re-encoder" means an electronic device that places encoded information from 
8.2 	the magnetic strip or stripe of a card onto the magnetic strip or stripe of a different card. 
8.3 	(f) "Scanning device" means a scanner, reader, or any other electronic device that 
8.4 	is used to access, read, scan, obtain, memorize, or store, temporarily or permanently, 
8.5 	information encoded on the magnetic strip or stripe of a card.  
8.6 		Subd. 3.Skimming card fraud. (a) A person who does any of the following 
8.7 	commits skimming card fraud: 
8.8 	(1) uses a scanning device to access, read, obtain, memorize, or store, temporarily or 
8.9 	permanently, information encoded on the magnetic strip or stripe of a card without the 
8.10 	permission of the authorized user of the card and with the intent to defraud the authorized 
8.11 	user, the issuer of the authorized user's card, or a merchant; or 
8.12 	(2) uses a re-encoder to place information encoded on the magnetic strip or stripe of 
8.13 	a card onto the magnetic strip or stripe of a different card without the permission of the 
8.14 	authorized user of the card from which the information is being re-encoded and with the 
8.15 	intent to defraud the authorized user, the issuer of the authorized user's card, or a merchant.
8.16 		Subd. 4.Penalties. (a) If no money, property, or services is obtained by skimming 
8.17 	card fraud, as defined in subdivision 3, the person shall be sentenced to imprisonment for 
8.18 	not more than 90 days, or to payment of a fine of not more than $1,000. 
8.19 	(b) If money, property, or services is obtained by skimming card fraud, as defined 
8.20 	in subdivision 3, the value of the loss shall be determined as provided in section 609.52, 
8.21 	subdivision 1, clause (3), and the person obtaining the money, property, or services may be 
8.22 	sentenced as provided in section 609.52, subdivision 3.

8.23 	EFFECTIVE DATE. This section is effective August 1, 2006, and applies to crimes 
8.24 	committed on or after that date.

8.25 	Sec. 11. ADMISSIBILITY OF EVIDENCE OF IDENTITY THEFT; REQUEST 
8.26 	TO SUPREME COURT.
 8.27 	The Minnesota Supreme Court is requested to consider amending its rules of 
8.28 	evidence to permit admission of business records, at least in civil and criminal cases 
8.29 	alleging identity theft, based upon an authenticating affidavit of the custodian of the 
8.30 	business records, rather than requiring the in-person authentication testimony of the 
8.31 	custodian of the business records. One model for such a rule is California Evidence Code, 
8.32 	sections 1560 to 1567.