| |
| |
| |
|
|
AN ACT
|
|
|
relating to a security freeze on a consumer file maintained by a |
|
|
consumer reporting agency. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subsection (a), Section 20.034, Business & |
|
|
Commerce Code, is amended to read as follows: |
|
|
(a) On written request sent by certified mail that includes |
|
|
proper identification provided by a consumer [and a copy of a valid
|
|
|
police report, investigative report, or complaint made under
|
|
|
Section 32.51, Penal Code], a consumer reporting agency shall place |
|
|
a security freeze on a consumer's consumer file not later than the |
|
|
fifth business day after the date the agency receives the request. |
|
|
SECTION 2. Section 20.0385, Business & Commerce Code, is |
|
|
amended to read as follows: |
|
|
Sec. 20.0385. APPLICABILITY OF SECURITY ALERT AND SECURITY |
|
|
FREEZE. (a) The requirement under this chapter to place a |
|
|
security alert or security freeze on a consumer file does not apply |
|
|
to: |
|
|
(1) a check service or fraud prevention service |
|
|
company that issues consumer reports: |
|
|
(A) to prevent or investigate fraud; or |
|
|
(B) for purposes of approving or processing |
|
|
negotiable instruments, electronic funds transfers, or similar |
|
|
methods of payment; or |
|
|
(2) a deposit account information service company that |
|
|
issues consumer reports related to account closures caused by |
|
|
fraud, substantial overdrafts, automated teller machine abuses, or |
|
|
similar negative information regarding a consumer to an inquiring |
|
|
financial institution for use by the financial institution only in |
|
|
reviewing a consumer request for a deposit account with that |
|
|
institution. |
|
|
(b) The requirement under this chapter to place a security |
|
|
freeze on a consumer file does not apply to a consumer reporting |
|
|
agency that: |
|
|
(1) acts only to resell credit information by |
|
|
assembling and merging information contained in a database of |
|
|
another consumer reporting agency or multiple consumer reporting |
|
|
agencies; and |
|
|
(2) does not maintain a permanent database of credit |
|
|
information from which new consumer reports are produced. |
|
|
(c) Notwithstanding Section 20.12, a violation of a |
|
|
requirement under this chapter to place, temporarily lift, or |
|
|
remove a security freeze on a consumer file is not a false, |
|
|
misleading, or deceptive act or practice under Subchapter E, |
|
|
Chapter 17. |
|
|
SECTION 3. Section 20.04, Business & Commerce Code, is |
|
|
amended to read as follows: |
|
|
Sec. 20.04. CHARGES FOR CERTAIN DISCLOSURES OR SERVICES. |
|
|
(a) Except as provided by Subsection (b), a consumer reporting |
|
|
agency may impose a reasonable charge on a consumer for the |
|
|
disclosure of information pertaining to the consumer or for placing |
|
|
a security freeze on a consumer file, temporarily lifting a |
|
|
security freeze for a designated period or for an identified |
|
|
requester, or removing a security freeze in accordance with this |
|
|
chapter. The amount of the charge for the disclosure of information |
|
|
pertaining to the consumer may not exceed $8. The amount of the |
|
|
charge for placing a security freeze on a consumer file, |
|
|
temporarily lifting a security freeze for a designated period, or |
|
|
removing a security freeze may not exceed $10 per request. The |
|
|
amount of the charge for temporarily lifting a security freeze for |
|
|
an identified requester may not exceed $12 per request. On January |
|
|
1 of each year, a consumer reporting agency may increase the charge |
|
|
for disclosure to a consumer or for placing, temporarily lifting, |
|
|
or removing a security freeze. The increase, if any, must be based |
|
|
proportionally on changes to the Consumer Price Index for All Urban |
|
|
Consumers as determined by the United States Department of Labor |
|
|
with fractional changes rounded to the nearest 50 cents. |
|
|
(b) A consumer reporting agency may not charge a fee for: |
|
|
(1) a request by a consumer for a copy of the |
|
|
consumer's file: |
|
|
(A) made not later than the 60th day after the |
|
|
date on which adverse action is taken against the consumer; or |
|
|
(B) made on the expiration of a 45-day security |
|
|
alert; |
|
|
(2) notification of the deletion of information that |
|
|
is found to be inaccurate or can no longer be verified sent to a |
|
|
person designated by the consumer, as prescribed by Section 611 of |
|
|
the Fair Credit Reporting Act (15 U.S.C. Section 1681i), as |
|
|
amended; |
|
|
(3) a set of instructions for understanding the |
|
|
information presented on the consumer report; |
|
|
(4) a toll-free telephone number that consumers may |
|
|
call to obtain additional assistance concerning the consumer report |
|
|
or to request a security alert; [or] |
|
|
(5) a request for a security alert made by a consumer; |
|
|
or |
|
|
(6) the placement, temporary lifting, or removal of a |
|
|
security freeze at the request of a consumer who has submitted to |
|
|
the consumer reporting agency a copy of a valid police report, |
|
|
investigative report, or complaint involving the alleged |
|
|
commission of an offense under Section 32.51, Penal Code. |
|
|
SECTION 4. Subsection (e), Section 20.037, Business & |
|
|
Commerce Code, is repealed. |
|
|
SECTION 5. The change in law made by this Act applies only |
|
|
to a request for placement, removal, or temporary lifting of a |
|
|
security freeze on a consumer file that is made on or after the |
|
|
effective date of this Act. A request for placement, removal, or |
|
|
temporary lifting of a security freeze on a consumer file that is |
|
|
made before the effective date of this Act is governed by the law in |
|
|
effect on the date the request was made, and the former law is |
|
|
continued in effect for that purpose. |
|
|
SECTION 6. This Act takes effect September 1, 2007. |
|
|
|
|
|
|
| |
| |
| |
| |
______________________________ |
______________________________ |
| |
President of the Senate |
Speaker of the House |
| |
|
|
I hereby certify that S.B. No. 222 passed the Senate on |
|
|
March 28, 2007, by the following vote: Yeas 30, Nays 0; |
|
|
May 21, 2007, Senate refused to concur in House amendments and |
|
|
requested appointment of Conference Committee; May 24, 2007, House |
|
|
granted request of the Senate; May 25, 2007, Senate adopted |
|
|
Conference Committee Report by the following vote: Yeas 30, |
|
|
Nays 0. |
|
|
|
| |
| |
______________________________ |
| |
Secretary of the Senate |
| |
|
|
I hereby certify that S.B. No. 222 passed the House, with |
|
|
amendments, on May 16, 2007, by the following vote: Yeas 146, |
|
|
Nays 0, one present not voting; May 24, 2007, House granted request |
|
|
of the Senate for appointment of Conference Committee; |
|
|
May 25, 2007, House adopted Conference Committee Report by the |
|
|
following vote: Yeas 142, Nays 0, one present not voting. |
|
|
|
| |
| |
______________________________ |
| |
Chief Clerk of the House |
| |
|
|
|
| |
|
|
Approved: |
|
|
|
|
|
______________________________ |
|
|
Date |
|
|
|
|
|
|
|
|
______________________________ |
|
|
Governor |