Bill Text: FL S0566 | 2013 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Security of Protected Consumer Information
Spectrum: Bipartisan Bill
Status: (Failed) 2013-05-03 - Died in Judiciary [S0566 Detail]
Download: Florida-2013-S0566-Introduced.html
Bill Title: Security of Protected Consumer Information
Spectrum: Bipartisan Bill
Status: (Failed) 2013-05-03 - Died in Judiciary [S0566 Detail]
Download: Florida-2013-S0566-Introduced.html
Florida Senate - 2013 SB 566 By Senator Detert 28-00625A-13 2013566__ 1 A bill to be entitled 2 An act relating to security of protected consumer 3 information; creating s. 501.0051, F.S.; providing 4 definitions; authorizing the representative of a 5 protected consumer to place a security freeze on the 6 protected consumer’s consumer record; requiring a 7 consumer reporting agency to establish a record if the 8 protected consumer does not have an existing consumer 9 report; requiring a consumer reporting agency to 10 provide written confirmation of a security freeze 11 within a specified period; prohibiting a consumer 12 reporting agency from stating or implying that a 13 security freeze reflects a negative credit history or 14 rating; requiring a consumer reporting agency to 15 remove a security freeze under specified conditions; 16 providing for applicability; authorizing a consumer 17 reporting agency to charge a fee for placing or 18 removing a security freeze and for reissuing personal 19 identification information; prohibiting a fee under 20 certain circumstances; requiring written notification 21 to change specified information in a protected 22 consumer’s record; providing exemptions; requiring a 23 consumer reporting agency to notify a representative 24 and provide specified information if the consumer 25 reporting agency violates a security freeze; providing 26 penalties and civil remedies; amending s. 501.005, 27 F.S.; revising written disclosure requirements for 28 consumer reporting agencies pertaining to consumer 29 rights associated with a security freeze; conforming a 30 cross-reference; providing an effective date. 31 32 Be It Enacted by the Legislature of the State of Florida: 33 34 Section 1. Section 501.0051, Florida Statutes, is created 35 to read: 36 501.0051 Protected consumer security freeze.— 37 (1) As used in this section, the term: 38 (a) “Consumer reporting agency” has the same meaning as 39 provided in 15 U.S.C. s. 1681a(f). 40 (b) “Consumer report” has the same meaning as provided in 41 15 U.S.C. s. 1681a(d). 42 (c) “Protected consumer” means a person younger than 16 43 years of age at the time a security freeze request is made or a 44 person represented by a guardian or other advocate pursuant to 45 chapter 39, chapter 393, or chapter 744. 46 (d) “Record” means a compilation of information that: 47 1. Identifies a protected consumer; 48 2. Is created by a consumer reporting agency exclusively 49 for the purpose of complying with this section; and 50 3. May not be created or used to consider the protected 51 consumer’s credit worthiness, credit standing, credit capacity, 52 character, general reputation, personal characteristics, or 53 eligibility for other financial services. 54 (e) “Representative” means the custodial parent or legal 55 guardian of a protected consumer, including a guardian appointed 56 pursuant to s. 914.17. 57 (f) “Security freeze” means: 58 1. A notice that is placed on the protected consumer’s 59 consumer report that prohibits a consumer reporting agency from 60 releasing the consumer report, credit score, or any information 61 contained within the consumer report to a third party without 62 the express authorization of the representative; or 63 2. A notice that is placed on the protected consumer’s 64 record that prohibits the consumer reporting agency from 65 releasing the protected consumer’s record except as provided in 66 this section, if a consumer reporting agency does not have a 67 file pertaining to the protected consumer. 68 (g) “Sufficient proof of authority” means documentation 69 that shows that a representative has authority to act on behalf 70 of a protected consumer. Sufficient proof of authority includes, 71 but is not limited to, a court order, valid power of attorney, 72 or a written notarized statement signed by a representative that 73 expressly describes the authority of the representative to act 74 on behalf of the protected consumer. 75 (h) “Sufficient proof of identification” means 76 documentation that identifies a protected consumer or a 77 representative of a protected consumer. Sufficient proof of 78 identification includes, but is not limited to, a copy of a 79 social security card, a certified or official copy of a birth 80 certificate, a copy of a valid driver license, or a government 81 issued photo identification. 82 (2) A representative may place a security freeze on a 83 protected consumer’s consumer record by: 84 (a) Submitting a request to a consumer reporting agency in 85 the manner prescribed by that agency; 86 (b) Providing the agency with sufficient proof of authority 87 and sufficient proof of identification; and 88 (c) Paying the agency a fee as authorized under this 89 section. 90 (3) If a consumer reporting agency does not have a consumer 91 report pertaining to a protected consumer when the consumer 92 reporting agency receives a request for a security freeze under 93 subsection (2), the consumer reporting agency shall create a 94 record for the protected consumer and place a security freeze on 95 the record. 96 (4) A consumer reporting agency shall place a security 97 freeze on a consumer record within 30 days after confirming the 98 authenticity of a security freeze request made in accordance 99 with this section. 100 (5) The consumer reporting agency shall send a written 101 confirmation of the security freeze to the representative within 102 10 business days after instituting the security freeze and shall 103 provide the representative with instructions for removing the 104 security freeze and a unique personal identifier to be used by 105 the representative when providing authorization for removal of a 106 security freeze. 107 (6) A consumer reporting agency may not state or imply to 108 any person that a security freeze on a protected consumer’s 109 consumer record reflects a negative credit score, negative 110 credit history, or a negative credit rating. 111 (7) A consumer reporting agency shall remove a security 112 freeze placed on a consumer record of a protected consumer only 113 in the following instances: 114 (a) Upon request of a representative pursuant to paragraph 115 (8)(a). 116 (b) Upon request of a protected consumer pursuant to 117 paragraph (8)(b). 118 (c) If the security freeze was instituted due to a material 119 misrepresentation of fact by a representative. If a consumer 120 reporting agency intends to remove a security freeze pursuant to 121 this paragraph, the consumer reporting agency shall notify the 122 representative in writing before removing the security freeze. 123 (8) A security freeze placed in accordance with this 124 section shall remain in place until a representative or 125 protected consumer requests that it be removed. A consumer 126 reporting agency shall remove a security freeze within 30 days 127 after receiving a request for removal from a protected consumer 128 or representative. 129 (a) A representative submitting a request for removal must 130 provide the following: 131 1. Sufficient proof of identification and sufficient proof 132 of authority as determined by the consumer reporting agency. 133 2. The unique personal identifier provided by the consumer 134 reporting agency pursuant to subsection (5). 135 3. Payment of a fee as authorized by this section. 136 (b) A protected consumer submitting a request for removal 137 must provide the following: 138 1. Sufficient proof of identification as determined by the 139 consumer reporting agency. 140 2. Documentation that the sufficient proof of authority for 141 the protected consumer’s representative to act on behalf of the 142 protected consumer is no longer valid. 143 (9) This section does not apply to use of a consumer record 144 by the following persons or for the following reasons: 145 (a) A state agency acting within its lawful investigative 146 or regulatory authority. 147 (b) A state or local law enforcement agency investigating a 148 crime or conducting a criminal background check. 149 (c) Any person administering a credit file monitoring 150 subscription service to which the protected consumer has 151 subscribed. 152 (d) Any person for the purpose of providing the protected 153 consumer’s consumer report upon the representative’s request. 154 (e) Any person with a court order lawfully entered. 155 (f) Any insurance company for use in setting or adjusting a 156 rate, adjusting a claim, or underwriting for insurance purposes. 157 (g) A consumer reporting agency’s database or file which 158 consists entirely of information concerning, and is used 159 exclusively for, one or more of the following: 160 1. Criminal record information. 161 2. Personal loss history information. 162 3. Fraud prevention or detection. 163 4. Tenant screening. 164 5. Employment screening. 165 6. Personal insurance policy information. 166 7. Noncredit information used for insurance purposes. 167 (h) A check services company that issues authorizations for 168 the purpose of approving or processing negotiable instruments, 169 electronic funds transfers, or similar methods of payment. 170 (i) A deposit account information service company that 171 issues reports regarding account closures due to fraud, 172 substantial overdrafts, automatic teller machine abuse, or 173 similar negative information regarding a protected consumer to 174 an inquiring financial institution, as defined in s. 655.005 or 175 in federal law, for use only in reviewing a representative’s 176 request for a deposit account for the protected consumer at the 177 inquiring financial institution. 178 (j) A consumer reporting agency that acts only as a 179 reseller of credit information by assembling and merging 180 information contained in the database of another consumer 181 reporting agency or multiple consumer reporting agencies and 182 does not maintain a permanent database of credit information 183 from which new consumer reports are produced. However, a 184 consumer reporting agency shall honor any security freeze placed 185 or removed by another consumer reporting agency. 186 (k) A fraud prevention services company issuing reports to 187 prevent or investigate fraud. 188 (10)(a) A consumer reporting agency may charge a reasonable 189 fee, not to exceed $10, to a representative who elects to place 190 or remove a security freeze. 191 (b) A consumer reporting agency may charge a reasonable 192 fee, not to exceed $10, if the representative fails to retain 193 the original personal identifier provided by the consumer 194 reporting agency and the agency must reissue the personal 195 identifier or provide a new personal identifier to the 196 representative. 197 (c) A consumer reporting agency may not charge any fee 198 under this section to a representative of a protected consumer 199 who is a victim of identity theft if the representative submits, 200 at the time the security freeze is requested, a copy of a valid 201 investigative report or incident report or complaint with a law 202 enforcement agency about the unlawful use of the protected 203 consumer’s identifying information by another person. 204 (11) If a security freeze is in effect, a consumer 205 reporting agency may not change any of the following official 206 information in the consumer record without sending a written 207 confirmation of the change to the representative within 30 days 208 after the change is posted to the protected consumer’s record: 209 (a) The protected consumer’s name. 210 (b) The protected consumer’s address. 211 (c) The protected consumer’s date of birth. 212 (d) The protected consumer’s social security number. 213 214 Written confirmation is not required for technical corrections 215 of a protected consumer’s official information, including name 216 and street abbreviations, complete spellings, or transposition 217 of numbers or letters. In the case of an address change, the 218 written confirmation must be sent to both the new address and 219 the former address. 220 (12) If a consumer reporting agency violates a security 221 freeze placed in accordance with this section by releasing 222 information subject to a security freeze without proper 223 authorization, the consumer reporting agency shall, within 5 224 business days after discovering or being notified of the release 225 of information, notify the representative of the protected 226 consumer in writing. The notice shall state the specific 227 information released, and provide the name, address, and other 228 contact information of the recipient of the information. 229 (13)(a) Any consumer reporting agency that willfully fails 230 to comply with any requirement imposed under this section with 231 respect to any representative or protected consumer is subject 232 to an administrative fine in the amount of up to $500 issued 233 pursuant to the administrative procedures established in chapter 234 120 by the Department of Agriculture and Consumer Services. 235 (b) Any individual who obtains a record under false 236 pretenses or knowingly without a permissible purpose is liable 237 to the representative and protected consumer for actual damages 238 sustained by the protected consumer as a result of the failure 239 of at least $100 but not more than $1,000. 240 (c) Any person who obtains a record from a consumer 241 reporting agency under false pretenses or knowingly without a 242 permissible purpose is liable to the consumer reporting agency 243 for actual damages sustained by the consumer reporting agency or 244 $1,000, whichever is greater. 245 Section 2. Subsection (17) of section 501.005, Florida 246 Statutes, is amended to read: 247 501.005 Consumer report security freeze.— 248 (17) Any written disclosure by a consumer reporting agency, 249 pursuant to 15 U.S.C. s. 1681g, to any consumer residing in this 250 state shall include a written summary of all rights the consumer 251 has under this section and s. 501.0051, and, in the case of a 252 consumer reporting agency which compiles and maintains consumer 253 reports on a nationwide basis, a toll-free telephone number 254 which the consumer can use to communicate with the consumer 255 reporting agency. The information set forth in paragraph (c)(b)256 of the written summary of rights must be in at least 12-point 257 boldface type. The written summary of rights required under this 258 section is sufficient if it is substantially in the following 259 form: 260 (a) You have a right to place a “security freeze” on your 261 consumer report, which will prohibit a consumer reporting agency 262 from releasing any information in your consumer report without 263 your express authorization. A security freeze must be requested 264 in writing by certified mail to a consumer reporting agency. The 265 security freeze is designed to prevent credit, loans, and 266 services from being approved in your name without your consent. 267 (b) If you are the custodial parent or legal guardian of a 268 minor younger than 16 years of age or a guardian or advocate of 269 an incapacitated, disabled, or protected person under chapter 270 39, chapter 393, chapter 744, or chapter 914, Florida Statutes, 271 you have a right to place a security freeze on the consumer 272 report of the person you are legally authorized to care for. If 273 no consumer report exists, you have a right to request a record 274 to be created and a security freeze to be placed on the record. 275 A record with a security freeze is intended to prevent the 276 opening of credit accounts until the security freeze is removed. 277 (c)(b)YOU SHOULD BE AWARE THAT USING A SECURITY FREEZE TO 278 CONTROL ACCESS TO THE PERSONAL AND FINANCIAL INFORMATION IN YOUR 279 CONSUMER REPORT MAY DELAY, INTERFERE WITH, OR PROHIBIT THE 280 TIMELY APPROVAL OF ANY SUBSEQUENT REQUEST OR APPLICATION YOU 281 MAKE REGARDING A NEW LOAN, CREDIT, MORTGAGE, INSURANCE, 282 GOVERNMENT SERVICES OR PAYMENTS, RENTAL HOUSING, EMPLOYMENT, 283 INVESTMENT, LICENSE, CELLULAR PHONE, UTILITIES, DIGITAL 284 SIGNATURE, INTERNET CREDIT CARD TRANSACTION, OR OTHER SERVICES, 285 INCLUDING AN EXTENSION OF CREDIT AT POINT OF SALE. 286 (d)(c)When you place a security freeze on your consumer 287 report, you will be provided a personal identification number or 288 password to use if you choose to remove the freeze on your 289 consumer report or authorize the release of your consumer report 290 for a designated period of time after the security freeze is in 291 place. To provide that authorization, you must contact the 292 consumer reporting agency and provide all of the following: 293 1. The personal identification number or password. 294 2. Proper identification to verify your identity. 295 3. Information specifying the period of time for which the 296 report shall be made available. 297 4. Payment of a fee authorized by this section. 298 (e)(d)A consumer reporting agency must authorize the 299 release of your consumer report no later than 3 business days 300 after receiving the above information. 301 (f)(e)A security freeze does not apply to a person or 302 entity, or its affiliates, or collection agencies acting on 303 behalf of the person or entity, with which you have an existing 304 account, that requests information in your consumer report for 305 the purposes of reviewing or collecting the account. Reviewing 306 the account includes activities related to account maintenance, 307 monitoring, credit line increases, and account upgrades and 308 enhancements. 309 (g)(f)You have the right to bring a civil action against 310 anyone, including a consumer reporting agency, who fails to 311 comply with the provisions of s. 501.005, Florida Statutes, 312 which governs the placing of a consumer report security freeze 313 on your consumer report. 314 Section 3. This act shall take effect September 1, 2013.