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A08955 Summary:

A08955 Actions:

A08955 Floor Votes:

A08955 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         8955--B
 
                   IN ASSEMBLY
 
                                      March 4, 2014
                                       ___________
 
        Introduced  by  M.  of  A. DINOWITZ, CLARK, SIMANOWITZ, MARKEY, GUNTHER,
          HIKIND, MOSLEY, MONTESANO, JACOBS, GOTTFRIED, ZEBROWSKI, GALEF,  COOK,
          HOOPER,  COLTON,  RAIA, OTIS -- Multi-Sponsored by -- M. of A. ARROYO,
          CERETTO, CROUCH, DUPREY, HEASTIE, McLAUGHLIN,  PEOPLES-STOKES,  PERRY,
          SCHIMEL,  SCHIMMINGER,  SWEENEY,  TITONE,  WEISENBERG -- read once and

          referred to the  Committee  on  Consumer  Affairs  and  Protection  --
          reported   and  referred  to  the  Committee  on  Codes  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee -- again reported from said  committee  with  amend-
          ments, ordered reprinted as amended and recommitted to said committee
 
        AN  ACT  to amend the general business law, in relation to credit record
          freezes and protected minors
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Section  380-a  of the general business law is amended by
     2  adding six new subdivisions (o), (p), (q), (r), (s) and (t) to  read  as
     3  follows:
     4    (o) The term "protected consumer" means an individual who is under the

     5  age  of sixteen years at the time a request for the placement of a secu-
     6  rity freeze is made.
     7    (p) The term "record" means a  compilation  of  information  that  (1)
     8  identifies  a  protected  consumer;  (2) is created by a consumer credit
     9  reporting agency solely for the purpose of complying with section  three
    10  hundred  eighty-u of this article; and (3) may not be created or used to
    11  consider the protected consumer's credit  worthiness,  credit  standing,
    12  credit  capacity,  character,  general  reputation,  personal character-
    13  istics, or mode of living for any purpose listed in this article.
    14    (q) The term "representative" means a person who provides to a consum-
    15  er credit reporting agency sufficient  proof  of  authority  to  act  on

    16  behalf of a protected consumer.
    17    (r)  The  term "security freeze for a protected person" means (1) if a
    18  consumer credit reporting agency does not have a file  pertaining  to  a
    19  protected  consumer,  a restriction that: (i) is placed on the protected
    20  consumer's record in accordance with this section;  and  (ii)  prohibits
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13240-13-4
        A. 8955--B                          2
 
     1  the  consumer  credit  reporting  agency  from  releasing  the protected
     2  consumer's record except as provided in this section; or

     3    (2) if a consumer credit reporting agency has a file pertaining to the
     4  protected  consumer,  a  restriction that (i) is placed on the protected
     5  consumer's consumer credit report in accordance with this  section;  and
     6  (ii)  prohibits  the consumer credit reporting agency from releasing the
     7  protected consumer's consumer credit report or any  information  derived
     8  from  the protected consumer's consumer credit report except as provided
     9  in this section.
    10    (s) The term "sufficient proof of authority" means documentation  that
    11  shows  a  representative  has  authority to act on behalf of a protected
    12  consumer. "Sufficient proof of authority"  shall  include,  but  not  be
    13  limited  to,  (1)  an  order issued by a court of law; or (2) a written,

    14  notarized statement signed by a representative that expressly  describes
    15  the  authority  of  the  representative  to act on behalf of a protected
    16  consumer.
    17    (t) The term "sufficient proof of identification" means information or
    18  documentation that identifies a protected consumer or  a  representative
    19  of  a  protected  consumer.  "Sufficient  proof of identification" shall
    20  include, but not be limited to, (1) a social security number or  a  copy
    21  of  a social security card issued by the social security administration;
    22  (2) a certified or official copy of a birth certificate; or (3)  a  copy
    23  of  a  driver's license, an identification card issued by the department
    24  of motor vehicles, or any other government-issued photo identification.

    25    § 2. Section 380-u of the general business law, as relettered by chap-
    26  ter 63 of the laws of 2006,  is  relettered  section  380-v  and  a  new
    27  section 380-u is added to read as follows:
    28    §  380-u.  Security record freeze for protected minors. (a) A consumer
    29  credit reporting agency shall place a security freeze  for  a  protected
    30  consumer if:
    31    (1)  The  consumer credit reporting agency receives a request from the
    32  protected consumer's representative for the placement  of  the  security
    33  freeze under this section; and
    34    (2) The protected consumer's representative (i) submits the request to
    35  the  consumer  credit  reporting agency at the address or other point of
    36  contact and in the manner specified by  the  consumer  credit  reporting

    37  agency; (ii) provides to the consumer credit reporting agency sufficient
    38  proof  of  identification  of  the  protected consumer and the represen-
    39  tative; (iii) provides to the consumer credit  reporting  agency  suffi-
    40  cient proof of authority to act on behalf of the protected consumer; and
    41  (iv)  pays  to  the  consumer  credit reporting agency a fee, if any, as
    42  provided in this section.
    43    (b) If a consumer  credit  reporting  agency  does  not  have  a  file
    44  pertaining  to  a  protected consumer when the consumer credit reporting
    45  agency receives a request under subdivision (a)  of  this  section,  the
    46  consumer credit reporting agency shall create a record for the protected
    47  consumer.

    48    (c)  Within  thirty  days  after  receiving  a  request that meets the
    49  requirements of paragraph two of subdivision  (a)  of  this  section,  a
    50  consumer  credit  reporting agency shall place a security freeze for the
    51  protected consumer on the record created for the protected  consumer  or
    52  on  the  file pertaining to the protected consumer in the event that the
    53  consumer reporting agency already has a file pertaining to the protected
    54  consumer.
    55    (d) Unless a security freeze for a  protected  person  is  removed  in
    56  accordance with this section, a consumer credit reporting agency may not
        A. 8955--B                          3
 
     1  release the protected consumer's consumer credit report, any information

     2  derived  from  the  protected  consumer's consumer report, or any record
     3  created for the protected consumer.
     4    (e)  A  security  freeze  for  a  protected consumer placed under this
     5  section shall remain in effect until:
     6    (1) The protected consumer or the protected consumer's  representative
     7  requests  the  consumer  credit  reporting agency to remove the security
     8  freeze for a protected person in accordance with subdivision (f) of this
     9  section; or
    10    (2) The security freeze is removed in accordance with subdivision  (i)
    11  of this section.
    12    (f)  If  a protected consumer or a protected consumer's representative
    13  wishes to remove a security  freeze  for  the  protected  consumer,  the

    14  protected consumer or the protected consumer's representative shall:
    15    (1)  Submit  a  request  for the removal of the security freeze to the
    16  consumer credit reporting agency  at  the  address  or  other  point  of
    17  contact  and  in  the  manner specified by the consumer credit reporting
    18  agency;
    19    (2) Provide to the consumer credit reporting agency: (i) in  the  case
    20  of  a  request  by the protected consumer: (A) proof that the sufficient
    21  proof of authority for the protected consumer's representative to act on
    22  behalf of the  protected  consumer  is  no  longer  valid  or  that  the
    23  protected  consumer  has attained the age of sixteen; and (B) sufficient
    24  proof of identification of the protected consumer; or (ii) in  the  case

    25  of  a request by the representative of a protected consumer:  (A) suffi-
    26  cient proof of identification of the protected consumer and  the  repre-
    27  sentative; and (B) sufficient proof of authority to act on behalf of the
    28  protected  consumer; and (C) pay to the consumer credit reporting agency
    29  a fee, if any, as provided in subdivision (h) of this section.
    30    (g) Within thirty days  after  receiving  a  request  that  meets  the
    31  requirements  of  subdivision  (f)  of this section, the consumer credit
    32  reporting agency shall remove the  security  freeze  for  the  protected
    33  consumer.
    34    (h)(1) A consumer credit reporting agency may charge a reasonable fee,
    35  not  exceeding fifteen dollars, for each placement or removal of a secu-

    36  rity freeze for a protected consumer as  provided  for  in  subparagraph
    37  (iv)  of  paragraph two of subdivision (a) or clause (C) of subparagraph
    38  (ii) of paragraph two of subdivision (f) of this section.    A  consumer
    39  credit  reporting  agency  shall  not charge a fee for any other service
    40  performed under this section.
    41    (2) Notwithstanding paragraph one  of  this  subdivision,  a  consumer
    42  credit  reporting  agency  may not charge any fee under this section if;
    43  (i) the protected consumer's representative: (A) has obtained  a  report
    44  of  alleged  identity theft or fraud against the protected consumer; and
    45  (B) provides a copy of the report to the consumer credit reporting agen-

    46  cy; or (ii) the consumer credit reporting agency has a  consumer  credit
    47  report pertaining to the protected consumer.
    48    (i)  A consumer credit reporting agency shall remove a security freeze
    49  for a protected consumer, or delete a record of a protected    consumer,
    50  if  the  security freeze was placed or the record was created based on a
    51  material misrepresentation of fact by  the  protected  consumer  or  the
    52  protected consumer's representative.
    53    (j) This section does not apply to:
    54    (1)  A  person  administering  a  credit  file monitoring subscription
    55  service to which: (i) the protected consumer has subscribed; or (ii) the
        A. 8955--B                          4
 

     1  representative of the protected consumer has subscribed on behalf of the
     2  protected consumer;
     3    (2) A person providing the protected consumer or the protected consum-
     4  er's  representative  with  a  copy of the protected consumer's consumer
     5  credit report  upon  the  request  of  the  protected  consumer  or  the
     6  protected consumer's representative;
     7    (3)(i)  An entity listed in paragraphs three through eight of subdivi-
     8  sion (m) of section three hundred eighty-t  of  this  article;  (ii)  an
     9  entity  listed  in  subdivision (p) of section three hundred eighty-t of
    10  this article; or (iii) a consumer credit reporting agency's database  or
    11  file  that consists of information concerning, and used for, one or more

    12  of the following:  criminal  record  information,  fraud  prevention  or
    13  detection, personal loss history information, and employment, tenant, or
    14  background screening.
    15    (k)  Notwithstanding  any other provision of law, the exclusive remedy
    16  for a violation of this section shall be in an action commenced  by  the
    17  attorney general.
    18    § 3. This act shall take effect January 1, 2015.