Bill Amendment: FL S0242 | 2014 | Regular Session

NOTE: For additional amemendments please see the Bill Drafting List

---

Bill Title: Security of a Protected Consumer's Information

Status: 2014-06-13 - Chapter No. 2014-66 [S0242 Detail]

Download: Florida-2014-S0242-Senate_Committee_Amendment_457178.html

---

       Florida Senate - 2014                        COMMITTEE AMENDMENT
       Bill No. CS for SB 242
       
       
       
       
       
       
                                Ì457178OÎ457178                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                                       .                                
                                       .                                
                                       .                                
                                       .                                
                                       .                                
       —————————————————————————————————————————————————————————————————




       —————————————————————————————————————————————————————————————————
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. This act may be cited as the “Keeping I.D. Safe
    6  (KIDS) Act.”
    7         Section 2. Section 501.0051, Florida Statutes, is created
    8  to read:
    9         501.0051 Protected consumer report security freeze.—
   10         (1) As used in this section, the term:
   11         (a) “Consumer report” has the same meaning as provided in
   12  15 U.S.C. s. 1681a(d).
   13         (b) “Consumer reporting agency” has the same meaning as
   14  provided in 15 U.S.C. s. 1681a(f).
   15         (c) “Protected consumer” means a person younger than 16
   16  years of age at the time a security freeze request is made or a
   17  person represented by a guardian or other advocate pursuant to
   18  chapter 39, chapter 393, chapter 744, or chapter 914.
   19         (d) “Record” means a compilation of information that:
   20         1. Identifies a protected consumer; and
   21         2. Is created by a consumer reporting agency exclusively
   22  for the purpose of complying with this section.
   23         (e) “Representative” means the parent or legal guardian of
   24  a protected consumer, including a guardian appointed pursuant to
   25  s. 914.17.
   26         (f) “Security freeze” means:
   27         1. A notice placed on a protected consumer’s consumer
   28  report which prohibits a consumer reporting agency from
   29  releasing the consumer report, the credit score, or any
   30  information contained within the consumer report to a third
   31  party without the express authorization of the representative;
   32  or
   33         2. If a consumer reporting agency does not have a consumer
   34  report pertaining to a protected consumer, a notice placed on a
   35  protected consumer’s record which prohibits the consumer
   36  reporting agency from releasing the protected consumer’s record
   37  except as provided in this section.
   38         (g) “Sufficient proof of authority” means documentation
   39  showing that a representative has authority to act on behalf of
   40  a protected consumer. The term includes, but is not limited to,
   41  a court order, a copy of a valid power of attorney, or a written
   42  notarized statement signed by the representative which expressly
   43  describes the authority of the representative to act on behalf
   44  of the protected consumer. A representative who is a parent may
   45  establish sufficient proof of authority by providing a certified
   46  or official copy of the protected consumer’s birth certificate.
   47         (h) “Sufficient proof of identification” means
   48  documentation identifying a protected consumer or a
   49  representative. The term includes, but is not limited to, a copy
   50  of a social security card, a certified or official copy of a
   51  birth certificate, a copy of a valid driver license, or a copy
   52  of a government-issued photo identification.
   53         (2) A representative may place a security freeze on a
   54  protected consumer’s consumer report by:
   55         (a) Submitting a request to a consumer reporting agency in
   56  the manner prescribed by that agency;
   57         (b) Providing the agency with sufficient proof of authority
   58  and sufficient proof of identification of the representative;
   59  and
   60         (c) Paying the agency a fee as authorized under this
   61  section.
   62         (3) If a consumer reporting agency does not have a consumer
   63  report pertaining to a protected consumer when the consumer
   64  reporting agency receives a request for a security freeze under
   65  subsection (2), the consumer reporting agency shall create a
   66  record for the protected consumer and place a security freeze on
   67  the record. A record may not be created or used to consider the
   68  protected consumer’s credit worthiness, credit standing, credit
   69  capacity, character, general reputation, personal
   70  characteristics, or eligibility for other financial services.
   71         (4) A consumer reporting agency shall place a security
   72  freeze on a consumer report or record within 30 days after
   73  confirming the authenticity of a security freeze request made in
   74  accordance with this section.
   75         (5) The consumer reporting agency shall send a written
   76  confirmation of the security freeze to the representative within
   77  10 business days after instituting the security freeze on the
   78  consumer report or record and shall provide the representative
   79  with instructions for removing the security freeze and a unique
   80  personal identifier to be used by the representative when
   81  providing authorization for removal of the security freeze.
   82         (6) A consumer reporting agency may not state or imply to
   83  any person that a security freeze reflects a negative credit
   84  score, a negative credit history, or a negative credit rating.
   85         (7) A consumer reporting agency shall remove a security
   86  freeze from a protected consumer’s consumer report or record
   87  only under either of the following circumstances:
   88         (a) Upon the request of a representative or a protected
   89  consumer. A consumer reporting agency shall remove a security
   90  freeze within 30 days after receiving a request for removal from
   91  a protected consumer or his or her representative.
   92         1. A representative submitting a request for removal must
   93  provide all of the following:
   94         a. Sufficient proof of identification of the representative
   95  and sufficient proof of authority as determined by the consumer
   96  reporting agency.
   97         b. The unique personal identifier provided by the consumer
   98  reporting agency pursuant to subsection (5).
   99         c. A fee as authorized under this section.
  100         2. A protected consumer submitting a request for removal
  101  must provide all of the following:
  102         a. Sufficient proof of identification of the protected
  103  consumer as determined by the consumer reporting agency.
  104         b. Documentation that the sufficient proof of authority of
  105  the protected consumer’s representative to act on behalf of the
  106  protected consumer is no longer valid.
  107         c. A fee as authorized under this section.
  108         (b) If the security freeze was instituted due to a material
  109  misrepresentation of fact. A consumer reporting agency that
  110  intends to remove a security freeze under this paragraph shall
  111  notify the representative and protected consumer in writing
  112  before removing the security freeze.
  113         (8) This section does not apply to the use of a protected
  114  consumer’s consumer report or record by the following persons or
  115  for the following reasons:
  116         (a) A state agency acting within its lawful investigative
  117  or regulatory authority.
  118         (b) A state or local law enforcement agency investigating a
  119  crime or conducting a criminal background check.
  120         (c) A person administering a credit file monitoring
  121  subscription service to which the protected consumer or the
  122  representative, on behalf of the protected consumer, has
  123  subscribed.
  124         (d) A person providing the protected consumer’s consumer
  125  report or record to the protected consumer or representative
  126  upon the request of the protected consumer or representative.
  127         (e) Pursuant to a court order lawfully entered.
  128         (f) An insurance company for use in setting or adjusting a
  129  rate, adjusting a claim, or underwriting for insurance purposes.
  130         (g) A consumer reporting agency’s database or file that
  131  consists entirely of information concerning, and used
  132  exclusively for, one or more of the following:
  133         1. Criminal record information.
  134         2. Personal loss history information.
  135         3. Fraud prevention or detection.
  136         4. Tenant screening.
  137         5. Employment screening.
  138         6. Personal insurance policy information.
  139         7. Noncredit information used for insurance purposes.
  140         (h) A check services company issuing authorizations for the
  141  purpose of approving or processing negotiable instruments,
  142  electronic funds transfers, or similar methods of payment.
  143         (i) A deposit account information service company issuing
  144  reports regarding account closures due to fraud, substantial
  145  overdrafts, automatic teller machine abuse, or similar negative
  146  information regarding a protected consumer to an inquiring
  147  financial institution, as defined in s. 655.005 or in federal
  148  law, for use only in reviewing a representative’s request for a
  149  deposit account for the protected consumer at the inquiring
  150  financial institution.
  151         (j) A consumer reporting agency that acts only as a
  152  reseller of credit information by assembling and merging
  153  information contained in the database of another consumer
  154  reporting agency or multiple consumer reporting agencies and
  155  that does not maintain a permanent database of credit
  156  information from which new consumer reports are produced.
  157  However, such consumer reporting agency shall honor any security
  158  freeze placed or removed by another consumer reporting agency.
  159         (k) A fraud prevention services company issuing reports to
  160  prevent or investigate fraud.
  161         (l) A person or entity, or its affiliates, or a collection
  162  agency acting on behalf of the person or entity, with which the
  163  protected consumer has an existing account, requesting
  164  information in the protected consumer’s consumer report or
  165  record for the purposes of reviewing or collecting the account.
  166  Reviewing the account includes activities related to account
  167  maintenance, monitoring, credit line increases, and account
  168  upgrades and enhancements.
  169         (9)(a) A consumer reporting agency may charge a reasonable
  170  fee, not to exceed $10, to place or remove a security freeze.
  171         (b) A consumer reporting agency may also charge a
  172  reasonable fee, not to exceed $10, if the representative fails
  173  to retain the original unique personal identifier provided by
  174  the consumer reporting agency and the agency must reissue the
  175  unique personal identifier or provide a new unique personal
  176  identifier to the representative.
  177         (c) A consumer reporting agency may not charge a fee under
  178  this section to the representative of a protected consumer who
  179  is a victim of identity theft if the representative submits, at
  180  the time the security freeze is requested, a copy of a valid
  181  investigative report, an incident report, or a complaint with a
  182  law enforcement agency about the unlawful use of the protected
  183  consumer’s identifying information by another person.
  184         (10) If a security freeze is in effect, a consumer
  185  reporting agency must send written confirmation to a protected
  186  consumer’s representative of a change to any of the following
  187  official information in the protected consumer’s consumer report
  188  or record within 30 days after the change is posted:
  189         (a) The protected consumer’s name.
  190         (b) The protected consumer’s address.
  191         (c) The protected consumer’s date of birth.
  192         (d) The protected consumer’s social security number.
  193  
  194  Written confirmation is not required for technical corrections
  195  of a protected consumer’s official information, including name
  196  and street abbreviations, complete spellings, or transposition
  197  of numbers or letters. In the case of an address change, the
  198  written confirmation must be sent to the representative and to
  199  the protected consumer’s new address and former address.
  200         (11) If a consumer reporting agency violates a security
  201  freeze placed in accordance with this section by releasing
  202  information subject to a security freeze without proper
  203  authorization, the consumer reporting agency shall, within 5
  204  business days after discovering or being notified of the release
  205  of information, notify the representative of the protected
  206  consumer in writing. The notice must state the specific
  207  information released and provide the name, address, and other
  208  contact information of the recipient of the information.
  209         (12) A consumer reporting agency that willfully fails to
  210  comply with any requirement imposed under this section is
  211  subject to an administrative fine in the amount of $500, imposed
  212  by the Department of Agriculture and Consumer Services pursuant
  213  to the administrative procedures established in chapter 120.
  214         (13) In addition to any other penalties or remedies
  215  provided under law, the following persons who are aggrieved by a
  216  violation of this section may bring a civil action as follows:
  217         (a) A person who obtains a protected consumer’s consumer
  218  report or record from a consumer reporting agency under false
  219  pretenses or who knowingly obtains a protected consumer’s
  220  consumer report or record without a permissible purpose is
  221  liable to the representative and protected consumer for actual
  222  damages sustained by the protected consumer or $1,000, whichever
  223  is greater.
  224         (b) A person who obtains a protected consumer’s consumer
  225  report or record from a consumer reporting agency under false
  226  pretenses or who knowingly obtains a protected consumer’s
  227  consumer report or record without a permissible purpose is
  228  liable to the consumer reporting agency for actual damages
  229  sustained by the consumer reporting agency or $1,000, whichever
  230  is greater.
  231         (14) A written disclosure by a consumer reporting agency,
  232  pursuant to 15 U.S.C. s. 1681g, to a representative and
  233  protected consumer residing in this state must include a written
  234  summary of all rights that the representative and protected
  235  consumer have under this section and, in the case of a consumer
  236  reporting agency that compiles and maintains records on a
  237  nationwide basis, a toll-free telephone number that the
  238  representative can use to communicate with the consumer
  239  reporting agency. The information provided in paragraph (b) must
  240  be in at least 12-point boldfaced type. The written summary of
  241  rights required under this section is sufficient if it is
  242  substantially in the following form:
  243         (a) If you are the parent or legal guardian of a minor
  244  younger than 16 years of age or a guardian or advocate of an
  245  incapacitated, disabled, or protected person under chapter 39,
  246  chapter 393, chapter 744, or chapter 914, Florida Statutes, you
  247  have the right to place a security freeze on the consumer report
  248  of the person you are legally authorized to care for. If no
  249  consumer report exists, you have the right to request that a
  250  record be created and a security freeze be placed on the record.
  251  A record with a security freeze is intended to prevent the
  252  opening of credit accounts until the security freeze is removed.
  253         (b) YOU SHOULD BE AWARE THAT USING A SECURITY FREEZE TO
  254  CONTROL ACCESS TO THE PERSONAL AND FINANCIAL INFORMATION IN A
  255  CONSUMER REPORT OR RECORD MAY DELAY, INTERFERE WITH, OR PROHIBIT
  256  THE TIMELY APPROVAL OF ANY SUBSEQUENT REQUEST OR APPLICATION
  257  REGARDING A NEW LOAN, CREDIT, MORTGAGE, INSURANCE, GOVERNMENT
  258  SERVICES OR PAYMENTS, RENTAL HOUSING, EMPLOYMENT, INVESTMENT,
  259  LICENSE, CELLULAR PHONE, UTILITIES, DIGITAL SIGNATURE, INTERNET
  260  CREDIT CARD TRANSACTION, OR OTHER SERVICES, INCLUDING AN
  261  EXTENSION OF CREDIT AT POINT OF SALE.
  262         (c) To remove the security freeze on the protected
  263  consumer’s record or report, you must contact the consumer
  264  reporting agency and provide all of the following:
  265         1. Proof of identification as required by the consumer
  266  reporting agency.
  267         2. Proof of authority over the protected consumer as
  268  required by the consumer reporting agency.
  269         3. The unique personal identifier provided by the consumer
  270  reporting agency.
  271         4. Payment of a fee.
  272         (d) A consumer reporting agency must, within 30 days after
  273  receiving the above information, authorize the removal of the
  274  security freeze.
  275         (e) A security freeze does not apply to a person or entity,
  276  or its affiliates, or a collection agency acting on behalf of
  277  the person or entity, with which the protected consumer has an
  278  existing account, which requests information in the protected
  279  consumer’s consumer report or record for the purposes of
  280  reviewing or collecting the account. Reviewing the account
  281  includes activities related to account maintenance, monitoring,
  282  credit line increases, and account upgrades and enhancements.
  283         (f) You have the right to bring a civil action as
  284  authorized by section 501.0051, Florida Statutes, which governs
  285  the security of protected consumer information.
  286         Section 3. This act shall take effect September 1, 2014.
  287  
  288  ================= T I T L E  A M E N D M E N T ================
  289  And the title is amended as follows:
  290         Delete everything before the enacting clause
  291  and insert:
  292                        A bill to be entitled                      
  293         An act relating to the security of a protected
  294         consumer’s information; providing a short title;
  295         creating s. 501.0051, F.S.; providing definitions;
  296         authorizing the representative of a protected consumer
  297         to place a security freeze on a protected consumer’s
  298         consumer report or record; specifying the procedure to
  299         request a security freeze; requiring a consumer
  300         reporting agency to establish a record if the
  301         protected consumer does not have an existing consumer
  302         report; prohibiting the use of a consumer record for
  303         certain purposes; requiring a consumer reporting
  304         agency to place, and to provide written confirmation
  305         of, a security freeze within a specified period;
  306         prohibiting a consumer reporting agency from stating
  307         or implying that a security freeze reflects a negative
  308         credit history or rating; requiring a consumer
  309         reporting agency to remove a security freeze under
  310         specified conditions; specifying the procedure to
  311         remove a security freeze; providing applicability;
  312         authorizing a consumer reporting agency to charge a
  313         fee for placing or removing a security freeze and for
  314         reissuing a unique personal identifier; prohibiting a
  315         fee under certain circumstances; requiring written
  316         notification upon the change of specified information
  317         in a protected consumer’s consumer report or record;
  318         providing exceptions; requiring a consumer reporting
  319         agency to notify a representative and provide
  320         specified information if the consumer reporting agency
  321         violates a security freeze; providing penalties and
  322         civil remedies; providing written disclosure
  323         requirements for consumer reporting agencies relating
  324         to a protected consumer’s security freeze; providing
  325         an effective date.