Bill Text: MI SB0174 | 2013-2014 | 97th Legislature | Introduced
Bill Title: Consumer credit; credit reports and reporting agencies; security freeze on credit reports concerning other children and consumers; allow under certain circumstance. Creates new act.
Spectrum: Slight Partisan Bill (Republican 22-10)
Status: (Passed) 2013-12-31 - Assigned Pa 0229'13 With Immediate Effect [SB0174 Detail]
Download: Michigan-2013-SB0174-Introduced.html
SENATE BILL No. 174
February 12, 2013, Introduced by Senators PROOS, JANSEN, JONES, HANSEN, YOUNG, COLBECK, MARLEAU and PAPPAGEORGE and referred to the Committee on Banking and Financial Institutions.
A bill to require certain consumer reporting agencies to place
security freezes for protected consumers under certain
circumstances; to provide for the removal of those security
freezes; to authorize and limit fees; and to provide remedies.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"childhood identity theft protection act".
Sec. 2. As used in this act:
(a) "Consumer" means an individual who resides in this state.
(b) "Consumer report" means any written, oral, or other
communication of any information by a consumer reporting agency
bearing on a consumer's creditworthiness, credit standing, credit
capacity, character, general reputation, personal characteristics,
or mode of living that is issued or expected to be used or
collected in whole or in part for the purpose of serving as a
factor in establishing the consumer's eligibility for any of the
following:
(i) Credit or insurance to be used primarily for personal,
family, or household purposes.
(ii) Employment purposes.
(iii) Any other purpose authorized under section 604 of the fair
credit reporting act, 15 USC 1681b.
(c) "Consumer reporting agency" means any person that, for
monetary fees or dues or on a cooperative nonprofit basis,
regularly engages in whole or in part in the practice of assembling
or evaluating consumer credit information or other information on
consumers for the purpose of furnishing consumer reports to third
parties and that uses any means or facility of interstate commerce
for the purpose of preparing or furnishing consumer reports.
(d) "Employment purposes" means used for the purpose of
evaluating a consumer for employment, promotion, reassignment, or
retention as an employee.
(e) "File" means all of the information on a consumer recorded
and retained by a consumer reporting agency regardless of how the
information is stored.
(f) "Protected consumer" means a consumer who is either of the
following:
(i) Under the age of 16 years at the time a request for the
placement of a security freeze is made.
(ii) An incapacitated individual or a protected individual for
whom a guardian or conservator has been appointed under article V
of the estates and protected individuals code, 1998 PA 386, MCL
700.5101 to 700.5520.
(g) "Record" means a compilation of information that meets all
of the following:
(i) Identifies a protected consumer.
(ii) Is created by a consumer reporting agency solely for the
purpose of complying with this act.
(iii) May not be created or used to consider the protected
consumer's creditworthiness, credit standing, credit capacity,
character, general reputation, personal characteristics, or mode of
living that is issued or expected to be used or collected in whole
or in part for the purpose of serving as a factor in establishing
the consumer's eligibility for any of the following:
(A) Credit or insurance to be used primarily for personal,
family, or household purposes.
(B) Employment purposes.
(C) Any other purpose authorized under section 604 of the fair
credit reporting act, 15 USC 1681b.
(h) "Representative" means an individual who provides to a
consumer reporting agency sufficient proof of authority to act on
behalf of a protected consumer.
(i) "Security freeze" means any of the following:
(i) If a consumer reporting agency does not have a file
pertaining to a protected consumer, a restriction that meets both
of the following:
(A) Is placed on the protected consumer's record under this
act.
(B) Prohibits the consumer reporting agency from releasing the
protected consumer's record except as provided in this act.
(ii) If a consumer reporting agency has a file pertaining to
the protected consumer, a restriction that meets both of the
following:
(A) Is placed on the protected consumer's consumer report
under this act.
(B) Prohibits the consumer reporting agency from releasing the
protected consumer's consumer report or any information derived
from the protected consumer's consumer report except as provided in
this act.
(j) "Sufficient proof of authority" means documentation that
shows that a representative has authority to act on behalf of a
protected consumer, including, but not limited to, any of the
following:
(i) An order issued by a court of law.
(ii) A lawfully executed and valid power of attorney.
(iii) A written, notarized statement signed by a representative
that expressly describes the authority of the representative to act
on behalf of a protected consumer.
(k) "Sufficient proof of identification" means information or
documentation that identifies a protected consumer or a
representative of a protected consumer, including, but not limited
to, any of the following:
(i) A social security number or a copy of a social security
card issued by the social security administration.
(ii) A certified or official copy of a birth certificate issued
by the entity authorized to issue the birth certificate.
(iii) A copy of an operator's license or chauffeur's license
issued under the Michigan vehicle code, 1949 PA 300, MCL 257.1 to
257.923, an official state personal identification card issued
under 1972 PA 222, MCL 28.291 to 28.300, or any other government–
issued identification.
(iv) A copy of a bill, including a bill for telephone, sewer,
septic tank, water, electric, oil, or natural gas services, that
shows a name and home address.
Sec. 3. This act does not apply to the use of a protected
consumer's consumer report or record by any of the following:
(a) A person that is administering a credit file monitoring
subscription service to which either of the following has
subscribed:
(i) The protected consumer.
(ii) On behalf of the protected consumer, his or her
representative.
(b) A person that provides the protected consumer or the
protected consumer's representative with a copy of the protected
consumer's consumer report on request of the protected consumer or
the protected consumer's representative.
(c) A person engaged in providing check services or fraud
prevention services that issues any of the following:
(i) Reports on incidents of fraud.
(ii) Authorizations for the purpose of approving or processing
negotiable instruments, electronic funds transfers, or similar
payment methods.
(d) A person engaged in providing deposit account information
services that issues reports regarding account closures due to
fraud, substantial overdrafts, automated teller machine abuse, or
similar negative information regarding a consumer to inquiring
banks or other financial institutions for use only in reviewing a
consumer request for a deposit account at the inquiring bank or
financial institution.
(e) A consumer reporting agency that meets both of the
following:
(i) Acts only as a reseller of credit information by assembling
and merging information contained in a database of another consumer
reporting agency or multiple consumer reporting agencies.
(ii) Does not maintain a permanent database of credit
information from which new consumer reports are produced.
Sec. 4. (1) A consumer reporting agency shall place a security
freeze for a protected consumer if all of the following are met:
(a) The consumer reporting agency receives a request from the
protected consumer's representative for the placement of the
security freeze under this act.
(b) The protected consumer's representative does all of the
following:
(i) Submits the request to the consumer reporting agency at the
address or other point of contact and in the manner specified by
the consumer reporting agency.
(ii) Provides to the consumer reporting agency sufficient proof
of identification of the protected consumer and the representative.
(iii) Provides to the consumer reporting agency sufficient proof
of authority to act on behalf of the protected consumer.
(iv) Pays to the consumer reporting agency the appropriate fee
under section 9.
(2) If a consumer reporting agency does not have a file
pertaining to a protected consumer when the consumer reporting
agency receives a request under subsection (1), the consumer
reporting agency shall create a record for the protected consumer.
Sec. 5. Within 30 days after receiving a request that meets
the requirements of section 4(1), a consumer reporting agency shall
place a security freeze for the protected consumer.
Sec. 6. Unless a security freeze for a protected consumer is
removed in accordance with section 8 or 10, a consumer reporting
agency may not release the protected consumer's consumer report,
any information derived from the protected consumer's consumer
report, or any record created for the protected consumer.
Sec. 7. A security freeze for a protected consumer placed
under section 5 shall remain in effect until 1 of the following is
met:
(a) The protected consumer or the protected consumer's
representative requests the consumer reporting agency to remove the
security freeze under section 8.
(b) The security freeze is removed under section 10.
Sec. 8. A consumer reporting agency shall remove a security
freeze for a protected consumer placed under section 5 within 30
days after the protected consumer or the protected consumer's
representative does all of the following:
(a) Submits a request for the removal of the security freeze
to the consumer reporting agency at the address or other point of
contact and in the manner specified by the consumer reporting
agency.
(b) Provides 1 of the following to the consumer reporting
agency:
(i) If the request for removal is submitted by the protected
consumer, all of the following:
(A) Proof that the sufficient proof of authority for the
protected consumer's representative to act on behalf of the
protected consumer is no longer valid.
(B) Sufficient proof of identification of the protected
consumer.
(ii) If the request for removal is submitted by the
representative of a protected consumer, all of the following:
(A) Sufficient proof of identification of the protected
consumer and the representative.
(B) Sufficient proof of authority to act on behalf of the
protected consumer.
(c) Pays the consumer reporting agency the appropriate fee
under section 9.
Sec. 9. (1) Except as provided in subsection (2), a consumer
reporting agency may not charge a fee for any service performed
under this act.
(2) Subject to subsection (3), a consumer reporting agency may
charge a reasonable fee, that does not exceed $5.00, for each
placement or removal of a security freeze for a protected consumer.
(3) A consumer reporting agency may not charge any fee
authorized under subsection (2) if either of the following is met:
(a) The protected consumer's representative has filed a police
report of alleged identity theft against the protected consumer
under section 4a, 33b, or 64a of the William Van Regenmorter crime
victim's rights act, 1985 PA 87, MCL 780.754a, 780.783b, and
780.814a, and provides a copy of the report to the consumer
reporting agency.
(b) The request for the placement or removal of a security
freeze is for a protected consumer who is under the age of 16 years
at the time of the request and the consumer reporting agency has a
consumer report pertaining to the protected consumer.
Sec. 10. A consumer reporting agency may remove a security
freeze for a protected consumer or delete a record of a protected
consumer if the security freeze was placed or the record was
created based on a material misrepresentation of fact by the
protected consumer or the protected consumer's representative.
Sec. 11. A consumer damaged by an intentional or negligent
violation of this act by a consumer reporting agency may bring an
action for that violation and is entitled to recover his or her
actual damages, plus reasonable attorney fees and court costs.
