Texas 2013 - 83rd Regular

Texas Senate Bill SB60 Compare Versions

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1	1	By: Nelson S.B. No. 60
2	2	(Giddings)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to authorizing the placement of a security freeze on the
8	8	consumer file or other record created or maintained by a consumer
9	9	reporting agency regarding a person under 16 years of age.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Chapter 20, Business & Commerce Code, is amended
12	12	by adding Subchapter E to read as follows:
13	13	SUBCHAPTER E. SECURITY FREEZE FOR CHILD
14	14	Sec. 20.21. DEFINITIONS. In this subchapter:
15	15	(1) "Protected consumer" means an individual who
16	16	resides in this state and is younger than 16 years of age at the time
17	17	a request for the placement of a security freeze is made.
18	18	(2) "Record," with respect to a protected consumer,
19	19	means a compilation of information identifying a protected consumer
20	20	created by a consumer reporting agency solely to comply with this
21	21	subchapter.
22	22	(3) "Representative" means a person who provides to a
23	23	consumer reporting agency sufficient proof of authority to act on
24	24	behalf of a protected consumer.
25	25	(4) "Security freeze," with respect to a protected
26	26	consumer, means:
27	27	(A) if a consumer reporting agency does not have
28	28	a consumer file pertaining to the protected consumer, a restriction
29	29	that:
30	30	(i) is placed on the protected consumer's
31	31	record in accordance with this subchapter; and
32	32	(ii) prohibits a consumer reporting agency
33	33	from releasing a consumer report relating to the extension of
34	34	credit involving the consumer's record without the express
35	35	authorization of the consumer's representative or the consumer, as
36	36	applicable; or
37	37	(B) if a consumer reporting agency has a consumer
38	38	file pertaining to the protected consumer, a restriction that:
39	39	(i) is placed on the protected consumer's
40	40	consumer report in accordance with this subchapter; and
41	41	(ii) except as otherwise provided by this
42	42	subchapter, prohibits a consumer reporting agency from releasing
43	43	the protected consumer's consumer report relating to the extension
44	44	of credit involving that consumer file, or any information derived
45	45	from the protected consumer's consumer report.
46	46	Sec. 20.22. APPLICABILITY; CONFLICT OF LAW. (a) This
47	47	subchapter does not apply to the use of a protected consumer's
48	48	consumer report or record by:
49	49	(1) a person administering a credit file monitoring
50	50	subscription service to which:
51	51	(A) the protected consumer has subscribed; or
52	52	(B) the representative of the protected consumer
53	53	has subscribed on behalf of the protected consumer;
54	54	(2) a person providing the protected consumer or the
55	55	protected consumer's representative with a copy of the protected
56	56	consumer's consumer report on request of the protected consumer or
57	57	the protected consumer's representative;
58	58	(3) a consumer reporting agency with respect to a
59	59	database or file that consists entirely of information concerning,
60	60	and is used solely for, one or more of the following:
61	61	(A) criminal history record information;
62	62	(B) personal loss history information;
63	63	(C) fraud prevention or detection;
64	64	(D) tenant screening; or
65	65	(E) employment screening; or
66	66	(4) an entity described by Section 20.038(11), (12),
67	67	or (13).
68	68	(b) To the extent of a conflict between a provision of this
69	69	subchapter relating to a protected consumer and another provision
70	70	of this chapter, this subchapter controls.
71	71	Sec. 20.23. PROOF OF AUTHORITY AND IDENTIFICATION.
72	72	(a) Documentation that shows a person has authority to act on
73	73	behalf of a protected consumer is considered sufficient proof of
74	74	authority for purposes of this subchapter, including:
75	75	(1) an order issued by a court; or
76	76	(2) a written, notarized statement signed by a
77	77	representative that expressly describes the authority of the
78	78	representative to act on behalf of a protected consumer.
79	79	(b) Information or documentation that identifies a
80	80	protected consumer or a representative of a protected consumer is
81	81	considered sufficient proof of identity for purposes of this
82	82	subchapter, including:
83	83	(1) a social security number or a copy of the social
84	84	security card issued by the United States Social Security
85	85	Administration;
86	86	(2) a certified or official copy of a birth
87	87	certificate issued by the entity authorized to issue the birth
88	88	certificate;
89	89	(3) a copy of a driver's license or identification card
90	90	issued by the Department of Public Safety; or
91	91	(4) any other government-issued identification.
92	92	Sec. 20.24. USE OF RECORD TO CONSIDER CREDITWORTHINESS OR
93	93	FOR OTHER PURPOSES PROHIBITED. A protected consumer's record may
94	94	not be created or used to consider the protected consumer's
95	95	creditworthiness, credit standing, credit capacity, character,
96	96	general reputation, personal characteristics, or mode of living for
97	97	any purpose described by Section 20.01(4).
98	98	Sec. 20.25. REQUEST TO PLACE A SECURITY FREEZE; CREATION OF
99	99	RECORD. (a) Except as provided by Subsection (b), a consumer
100	100	reporting agency shall place a security freeze on a protected
101	101	consumer's consumer file if:
102	102	(1) the consumer reporting agency receives a request
103	103	from the protected consumer's representative for the placement of
104	104	the security freeze as provided by this section; and
105	105	(2) the protected consumer's representative:
106	106	(A) submits the request to the consumer reporting
107	107	agency at the address or other point of contact of and in the manner
108	108	specified by the consumer reporting agency;
109	109	(B) provides to the consumer reporting agency
110	110	sufficient proof of identification of the protected consumer and
111	111	the representative;
112	112	(C) provides to the consumer reporting agency
113	113	sufficient proof of authority to act on behalf of the protected
114	114	consumer; and
115	115	(D) pays to the consumer reporting agency a fee
116	116	as provided by Section 20.29.
117	117	(b) If a consumer reporting agency does not have a consumer
118	118	file pertaining to a protected consumer when the consumer reporting
119	119	agency receives a request under Subsection (a) and if the
120	120	requirements of Subsection (a) are met, the consumer reporting
121	121	agency shall create a record for the protected consumer and place a
122	122	security freeze on the protected consumer's record.
123	123	(c) The consumer reporting agency shall place the security
124	124	freeze on the protected consumer's consumer file or record, as
125	125	applicable, not later than the 30th day after receiving a request
126	126	that meets the requirements of Subsection (a).
127	127	Sec. 20.26. RELEASE OF CONSUMER REPORT PROHIBITED. Unless
128	128	a security freeze on a protected consumer's consumer file or record
129	129	is removed under Section 20.28 or 20.30, a consumer reporting
130	130	agency may not release any consumer report relating to the
131	131	protected consumer, any information derived from the protected
132	132	consumer's consumer report, or any record created for the protected
133	133	consumer.
134	134	Sec. 20.27. PERIOD OF SECURITY FREEZE. A security freeze on
135	135	a protected consumer's consumer file or record remains in effect
136	136	until:
137	137	(1) the protected consumer or the protected consumer's
138	138	representative requests that the consumer reporting agency remove
139	139	the security freeze in accordance with Section 20.28; or
140	140	(2) a consumer reporting agency removes the security
141	141	freeze under Section 20.30.
142	142	Sec. 20.28. REMOVAL OF SECURITY FREEZE. (a) A protected
143	143	consumer or a protected consumer's representative may remove a
144	144	security freeze on a protected consumer's consumer file or record
145	145	if the protected consumer or representative:
146	146	(1) submits a request for the removal of the security
147	147	freeze to the consumer reporting agency at the address or other
148	148	point of contact of and in the manner specified by the consumer
149	149	reporting agency;
150	150	(2) provides to the consumer reporting agency:
151	151	(A) in the case of a request by the protected
152	152	consumer:
153	153	(i) sufficient proof of identification of
154	154	the protected consumer; and
155	155	(ii) proof that the sufficient proof of
156	156	authority for the protected consumer's representative to act on
157	157	behalf of the protected consumer is no longer valid; or
158	158	(B) in the case of a request by the
159	159	representative of a protected consumer:
160	160	(i) sufficient proof of identification of
161	161	the protected consumer and the representative; and
162	162	(ii) sufficient proof of authority to act
163	163	on behalf of the protected consumer; and
164	164	(3) pays to the consumer reporting agency a fee as
165	165	provided by Section 20.29.
166	166	(b) The consumer reporting agency shall remove the security
167	167	freeze on the protected consumer's consumer file or record not
168	168	later than the 30th day after the date the agency receives a request
169	169	that meets the requirements of Subsection (a).
170	170	Sec. 20.29. FEES. (a) A consumer reporting agency may not
171	171	charge a fee for any service performed under this subchapter other
172	172	than a fee authorized by this section.
173	173	(b) Except as provided by Subsection (c), a consumer
174	174	reporting agency may charge a reasonable fee in an amount not to
175	175	exceed $10 for each placement or removal of a security freeze on the
176	176	protected consumer's consumer file or record.
177	177	(c) A consumer reporting agency may not charge a fee for the
178	178	placement of a security freeze under this subchapter if:
179	179	(1) the protected consumer's representative submits to
180	180	the consumer reporting agency a copy of a valid police report,
181	181	investigative report, or complaint involving the commission of an
182	182	offense under Section 32.51, Penal Code; or
183	183	(2) at the time the protected consumer's
184	184	representative makes the request for a security freeze:
185	185	(A) the protected consumer is under the age of
186	186	16; and
187	187	(B) the consumer reporting agency has created a
188	188	consumer report pertaining to the protected consumer.
189	189	Sec. 20.30. EFFECT OF MATERIAL MISREPRESENTATION OF FACT.
190	190	A consumer reporting agency may remove a security freeze on a
191	191	protected consumer's consumer file or record, or delete a record of
192	192	a protected consumer, if the security freeze was placed or the
193	193	record was created based on a material misrepresentation of fact by
194	194	the protected consumer or the protected consumer's representative.
195	195	Sec. 20.31. REMEDY FOR VIOLATION. Notwithstanding
196	196	Subchapter D or any other law, the exclusive remedy for a violation
197	197	of this subchapter is a suit filed by the attorney general under
198	198	Section 20.11.
199	199	SECTION 2. Sections 20.01, 20.02, 20.021, and 20.03,
200	200	Business & Commerce Code, are designated as Subchapter A, Chapter
201	201	20, Business & Commerce Code, and a heading is added to that
202	202	subchapter to read as follows:
203	203	SUBCHAPTER A. GENERAL REQUIREMENTS
204	204	SECTION 3. Sections 20.031, 20.032, 20.033, 20.034, 20.035,
205	205	20.036, 20.037, 20.038, 20.0385, and 20.039, Business & Commerce
206	206	Code, are designated as Subchapter B, Chapter 20, Business &
207	207	Commerce Code, and a heading is added to that subchapter to read as
208	208	follows:
209	209	SUBCHAPTER B. SECURITY ALERT AND SECURITY FREEZE
210	210	SECTION 4. Sections 20.04, 20.05, 20.06, and 20.07,
211	211	Business & Commerce Code, are designated as Subchapter C, Chapter
212	212	20, Business & Commerce Code, and a heading is added to that
213	213	subchapter to read as follows:
214	214	SUBCHAPTER C. RESTRICTIONS ON AND AUTHORITY OF CONSUMERS AND
215	215	CONSUMER REPORTING AGENCIES
216	216	SECTION 5. Sections 20.08, 20.09, 20.10, 20.11, 20.12, and
217	217	20.13, Business & Commerce Code, are designated as Subchapter D,
218	218	Chapter 20, Business & Commerce Code, and a heading is added to that
219	219	subchapter to read as follows:
220	220	SUBCHAPTER D. ENFORCEMENT
221	221	SECTION 6. This Act takes effect January 1, 2014.