Bill Text: TX HB1087 | 2013-2014 | 83rd Legislature | Comm Sub
Bill Title: Relating to authorizing the placement of a security freeze on the consumer file or other record created or maintained by a consumer reporting agency regarding a person under 16 years of age.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-05-03 - Laid on the table subject to call [HB1087 Detail]
Download: Texas-2013-HB1087-Comm_Sub.html
83R5564 ATP-F | |||
By: Giddings | H.B. No. 1087 | ||
Substitute the following for H.B. No. 1087: | |||
By: Oliveira | C.S.H.B. No. 1087 |
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relating to authorizing the placement of a security freeze on the | ||
consumer file or other record created or maintained by a consumer | ||
reporting agency regarding a person under 16 years of age. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 20, Business & Commerce Code, is amended | ||
by adding Subchapter E to read as follows: | ||
SUBCHAPTER E. SECURITY FREEZE FOR CHILD | ||
Sec. 20.21. DEFINITIONS. In this subchapter: | ||
(1) "Protected consumer" means an individual who | ||
resides in this state and is younger than 16 years of age at the time | ||
a request for the placement of a security freeze is made. | ||
(2) "Record," with respect to a protected consumer, | ||
means a compilation of information identifying a protected consumer | ||
created by a consumer reporting agency solely to comply with this | ||
subchapter. | ||
(3) "Representative" means a person who provides to a | ||
consumer reporting agency sufficient proof of authority to act on | ||
behalf of a protected consumer. | ||
(4) "Security freeze," with respect to a protected | ||
consumer, means: | ||
(A) if a consumer reporting agency does not have | ||
a consumer file pertaining to the protected consumer, a restriction | ||
that: | ||
(i) is placed on the protected consumer's | ||
record in accordance with this subchapter; and | ||
(ii) prohibits a consumer reporting agency | ||
from releasing a consumer report relating to the extension of | ||
credit involving the consumer's record without the express | ||
authorization of the consumer's representative or the consumer, as | ||
applicable; or | ||
(B) if a consumer reporting agency has a consumer | ||
file pertaining to the protected consumer, a restriction that: | ||
(i) is placed on the protected consumer's | ||
consumer report in accordance with this subchapter; and | ||
(ii) except as otherwise provided by this | ||
subchapter, prohibits a consumer reporting agency from releasing | ||
the protected consumer's consumer report relating to the extension | ||
of credit involving that consumer file, or any information derived | ||
from the protected consumer's consumer report. | ||
Sec. 20.22. APPLICABILITY; CONFLICT OF LAW. (a) This | ||
subchapter does not apply to the use of a protected consumer's | ||
consumer report or record by: | ||
(1) a person administering a credit file monitoring | ||
subscription service to which: | ||
(A) the protected consumer has subscribed; or | ||
(B) the representative of the protected consumer | ||
has subscribed on behalf of the protected consumer; | ||
(2) a person providing 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; | ||
(3) a consumer reporting agency with respect to a | ||
database or file that consists entirely of information concerning, | ||
and is used solely for, one or more of the following: | ||
(A) criminal history record information; | ||
(B) personal loss history information; | ||
(C) fraud prevention or detection; | ||
(D) tenant screening; or | ||
(E) employment screening; or | ||
(4) an entity described by Section 20.038(11), (12), | ||
or (13). | ||
(b) To the extent of a conflict between a provision of this | ||
subchapter relating to a protected consumer and another provision | ||
of this chapter, this subchapter controls. | ||
Sec. 20.23. PROOF OF AUTHORITY AND IDENTIFICATION. (a) | ||
Documentation that shows a person has authority to act on behalf of | ||
a protected consumer is considered sufficient proof of authority | ||
for purposes of this subchapter, including: | ||
(1) an order issued by a court; or | ||
(2) a written, notarized statement signed by a | ||
representative that expressly describes the authority of the | ||
representative to act on behalf of a protected consumer. | ||
(b) Information or documentation that identifies a | ||
protected consumer or a representative of a protected consumer is | ||
considered sufficient proof of identity for purposes of this | ||
subchapter, including: | ||
(1) a social security number or a copy of the social | ||
security card issued by the United States Social Security | ||
Administration; | ||
(2) a certified or official copy of a birth | ||
certificate issued by the entity authorized to issue the birth | ||
certificate; | ||
(3) a copy of a driver's license or identification card | ||
issued by the Department of Public Safety; or | ||
(4) any other government-issued identification. | ||
Sec. 20.24. USE OF RECORD TO CONSIDER CREDITWORTHINESS OR | ||
FOR OTHER PURPOSES PROHIBITED. A protected consumer's record 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 for | ||
any purpose described by Section 20.01(4). | ||
Sec. 20.25. REQUEST TO PLACE A SECURITY FREEZE; CREATION OF | ||
RECORD. (a) Except as provided by Subsection (b), a consumer | ||
reporting agency shall place a security freeze on a protected | ||
consumer's consumer file if: | ||
(1) the consumer reporting agency receives a request | ||
from the protected consumer's representative for the placement of | ||
the security freeze as provided by this section; and | ||
(2) the protected consumer's representative: | ||
(A) submits the request to the consumer reporting | ||
agency at the address or other point of contact of and in the manner | ||
specified by the consumer reporting agency; | ||
(B) provides to the consumer reporting agency | ||
sufficient proof of identification of the protected consumer and | ||
the representative; | ||
(C) provides to the consumer reporting agency | ||
sufficient proof of authority to act on behalf of the protected | ||
consumer; and | ||
(D) pays to the consumer reporting agency a fee | ||
as provided by Section 20.29. | ||
(b) If a consumer reporting agency does not have a consumer | ||
file pertaining to a protected consumer when the consumer reporting | ||
agency receives a request under Subsection (a) and if the | ||
requirements of Subsection (a) are met, the consumer reporting | ||
agency shall create a record for the protected consumer and place a | ||
security freeze on the protected consumer's record. | ||
(c) The consumer reporting agency shall place the security | ||
freeze on the protected consumer's consumer file or record, as | ||
applicable, not later than the 30th day after receiving a request | ||
that meets the requirements of Subsection (a). | ||
Sec. 20.26. RELEASE OF CONSUMER REPORT PROHIBITED. Unless | ||
a security freeze on a protected consumer's consumer file or record | ||
is removed under Section 20.28 or 20.30, a consumer reporting | ||
agency may not release any consumer report relating to the | ||
protected consumer, any information derived from the protected | ||
consumer's consumer report, or any record created for the protected | ||
consumer. | ||
Sec. 20.27. PERIOD OF SECURITY FREEZE. A security freeze on | ||
a protected consumer's consumer file or record remains in effect | ||
until: | ||
(1) the protected consumer or the protected consumer's | ||
representative requests that the consumer reporting agency remove | ||
the security freeze in accordance with Section 20.28; or | ||
(2) a consumer reporting agency removes the security | ||
freeze under Section 20.30. | ||
Sec. 20.28. REMOVAL OF SECURITY FREEZE. (a) A protected | ||
consumer or a protected consumer's representative may remove a | ||
security freeze on a protected consumer's consumer file or record | ||
if the protected consumer or representative: | ||
(1) submits a request for the removal of the security | ||
freeze to the consumer reporting agency at the address or other | ||
point of contact of and in the manner specified by the consumer | ||
reporting agency; | ||
(2) provides to the consumer reporting agency: | ||
(A) in the case of a request by the protected | ||
consumer: | ||
(i) sufficient proof of identification of | ||
the protected consumer; and | ||
(ii) 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; or | ||
(B) in the case of a request by the | ||
representative of a protected consumer: | ||
(i) sufficient proof of identification of | ||
the protected consumer and the representative; and | ||
(ii) sufficient proof of authority to act | ||
on behalf of the protected consumer; and | ||
(3) pays to the consumer reporting agency a fee as | ||
provided by Section 20.29. | ||
(b) The consumer reporting agency shall remove the security | ||
freeze on the protected consumer's consumer file or record not | ||
later than the 30th day after the date the agency receives a request | ||
that meets the requirements of Subsection (a). | ||
Sec. 20.29. FEES. (a) A consumer reporting agency may not | ||
charge a fee for any service performed under this subchapter other | ||
than a fee authorized by this section. | ||
(b) Except as provided by Subsection (c), a consumer | ||
reporting agency may charge a reasonable fee in an amount not to | ||
exceed $10 for each placement or removal of a security freeze on the | ||
protected consumer's consumer file or record. | ||
(c) A consumer reporting agency may not charge a fee for the | ||
placement of a security freeze under this subchapter if: | ||
(1) the protected consumer's representative submits to | ||
the consumer reporting agency a copy of a valid police report, | ||
investigative report, or complaint involving the commission of an | ||
offense under Section 32.51, Penal Code; or | ||
(2) at the time the protected consumer's | ||
representative makes the request for a security freeze: | ||
(A) the protected consumer is under the age of | ||
16; and | ||
(B) the consumer reporting agency has created a | ||
consumer report pertaining to the protected consumer. | ||
Sec. 20.30. EFFECT OF MATERIAL MISREPRESENTATION OF FACT. | ||
A consumer reporting agency may remove a security freeze on a | ||
protected consumer's consumer file or record, 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. 20.31. REMEDY FOR VIOLATION. Notwithstanding | ||
Subchapter D or any other law, the exclusive remedy for a violation | ||
of this subchapter is a suit filed by the attorney general under | ||
Section 20.11. | ||
SECTION 2. Sections 20.01, 20.02, 20.021, and 20.03, | ||
Business & Commerce Code, are designated as Subchapter A, Chapter | ||
20, Business & Commerce Code, and a heading is added to that | ||
subchapter to read as follows: | ||
SUBCHAPTER A. GENERAL REQUIREMENTS | ||
SECTION 3. Sections 20.031, 20.032, 20.033, 20.034, 20.035, | ||
20.036, 20.037, 20.038, 20.0385, and 20.039, Business & Commerce | ||
Code, are designated as Subchapter B, Chapter 20, Business & | ||
Commerce Code, and a heading is added to that subchapter to read as | ||
follows: | ||
SUBCHAPTER B. SECURITY ALERT AND SECURITY FREEZE | ||
SECTION 4. Sections 20.04, 20.05, 20.06, and 20.07, | ||
Business & Commerce Code, are designated as Subchapter C, Chapter | ||
20, Business & Commerce Code, and a heading is added to that | ||
subchapter to read as follows: | ||
SUBCHAPTER C. RESTRICTIONS ON AND AUTHORITY OF CONSUMERS AND | ||
CONSUMER REPORTING AGENCIES | ||
SECTION 5. Sections 20.08, 20.09, 20.10, 20.11, 20.12, and | ||
20.13, Business & Commerce Code, are designated as Subchapter D, | ||
Chapter 20, Business & Commerce Code, and a heading is added to that | ||
subchapter to read as follows: | ||
SUBCHAPTER D. ENFORCEMENT | ||
SECTION 6. This Act takes effect January 1, 2014. |