Enrolled Bill Summary

            Senate Bill 473 amends the Business & Commerce Code to require a consumer reporting agency, on a request in writing or by telephone and with proper identification provided by a consumer, to place a notice, or security alert, on the requester's consumer file alerting a recipient of a consumer report involving that file that the consumer's identity may have been used without the consumer's consent to fraudulently obtain goods or services. A person who receives notice of a security alert in connection with a request for a consumer report for approval of a credit-based application is prohibited from lending money, extending credit, or authorizing an application without taking reasonable steps to verify the consumer's identity. The bill requires a consumer reporting agency to place the security alert within 24 hours after receiving the request and to maintain the alert for at least 45 days. At the end of the 45-day period the consumer may request a copy of the consumer's file. The bill also requires a consumer reporting agency, if the request from a consumer includes certain information, to place a notice, or security freeze, on a consumer file that prohibits a consumer reporting agency from releasing a consumer report relating to the extension of credit involving that consumer file without the express authorization of the consumer. The agency is required to place the security freeze and send a written confirmation to the consumer within certain time periods. The bill sets forth requirements for removing or temporarily lifting a security freeze, and provides for certain exemptions to a security freeze such as a consumer report provided to a state or local governmental entity. It also authorizes the attorney general to file suit for injunctive relief or a civil penalty of up to $2,000 per violation. It amends the Occupations Code to provide for identity theft education and training of law enforcement officers.

            Senate Bill 473 also provides for the confidentiality of social security numbers by prohibiting a person, other than government or a governmental subdivision or agency, from taking certain actions, including intentionally communicating or otherwise making available to the general public an individual's social security number or requiring such number to access a product or service. It also provides that a person using an individual's social security number in a prohibited manner before January 1, 2005, may continue that use if the use is continuous and the person provides annual disclosure to the individual stating that on written request the person will cease to use the individual's social security number in that manner. The bill makes exceptions for court records and certain other uses of a social security number.

            Senate Bill 473 takes effect September 1, 2003, except for provisions relating to confidentiality of social security numbers, which take effect January 1, 2005.