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A BILL TO BE ENTITLED
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AN ACT
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relating to a security freeze on a consumer file maintained by a |
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consumer reporting agency. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 20.034(a), Business & Commerce Code, is |
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amended to read as follows: |
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(a) On written request sent by certified mail that includes |
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proper identification provided by a consumer [and a copy of a valid
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police report, investigative report, or complaint made under
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Section 32.51, Penal Code], a consumer reporting agency shall place |
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a security freeze on a consumer's consumer file not later than the |
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fifth business day after the date the agency receives the request. |
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SECTION 2. Section 20.0385, Business & Commerce Code, is |
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amended to read as follows: |
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Sec. 20.0385. APPLICABILITY OF SECURITY ALERT AND SECURITY |
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FREEZE. (a) The requirement under this chapter to place a security |
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alert or security freeze on a consumer file does not apply to: |
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(1) a check service or fraud prevention service |
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company that issues consumer reports: |
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(A) to prevent or investigate fraud; or |
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(B) for purposes of approving or processing |
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negotiable instruments, electronic funds transfers, or similar |
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methods of payment; or |
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(2) a deposit account information service company that |
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issues consumer reports related to account closures caused by |
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fraud, substantial overdrafts, automated teller machine abuses, or |
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similar negative information regarding a consumer to an inquiring |
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financial institution for use by the financial institution only in |
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reviewing a consumer request for a deposit account with that |
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institution. |
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(b) The requirement under this chapter to place a security |
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freeze on a consumer file does not apply to a consumer reporting |
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agency that: |
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(1) acts only to resell credit information by |
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assembling and merging information contained in a database of |
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another consumer reporting agency or multiple consumer reporting |
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agencies; and |
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(2) does not maintain a permanent database of credit |
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information from which new consumer reports are produced. |
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SECTION 3. Section 20.04, Business & Commerce Code, is |
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amended to read as follows: |
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Sec. 20.04. CHARGES FOR CERTAIN DISCLOSURES OR |
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SERVICES. (a) Except as provided by Subsection (b), a consumer |
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reporting agency may impose a reasonable charge on a consumer for |
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the disclosure of information pertaining to the consumer or for |
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placing a security freeze on a consumer file, temporarily lifting a |
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security freeze for a designated period or for an identified |
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requester, or removing a security freeze in accordance with this |
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chapter. The amount of the charge for the disclosure of information |
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pertaining to the consumer may not exceed $8. The amount of the |
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charge for placing a security freeze on a consumer file, |
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temporarily lifting a security freeze for a designated period, or |
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removing a security freeze may not exceed $10 per request. The |
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amount of the charge for temporarily lifting a security freeze for |
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an identified requester may not exceed $12 per request. On January |
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1 of each year, a consumer reporting agency may increase the charge |
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for disclosure to a consumer or for placing, temporarily lifting, |
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or removing a security freeze. The increase, if any, must be based |
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proportionally on changes to the Consumer Price Index for All Urban |
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Consumers as determined by the United States Department of Labor |
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with fractional changes rounded to the nearest 50 cents. |
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(b) A consumer reporting agency may not charge a fee for: |
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(1) a request by a consumer for a copy of the |
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consumer's file: |
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(A) made not later than the 60th day after the |
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date on which adverse action is taken against the consumer; or |
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(B) made on the expiration of a 45-day security |
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alert; |
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(2) notification of the deletion of information that |
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is found to be inaccurate or can no longer be verified sent to a |
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person designated by the consumer, as prescribed by Section 611 of |
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the Fair Credit Reporting Act (15 U.S.C. Section 1681i), as |
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amended; |
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(3) a set of instructions for understanding the |
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information presented on the consumer report; |
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(4) a toll-free telephone number that consumers may |
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call to obtain additional assistance concerning the consumer report |
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or to request a security alert; [or] |
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(5) a request for a security alert made by a consumer; |
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or |
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(6) the placement, temporary lifting, or removal of a |
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security freeze at the request of a consumer who has submitted to |
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the consumer reporting agency a copy of a valid police report, |
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investigative report, or complaint involving the alleged |
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commission of an offense under Section 32.51, Penal Code. |
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SECTION 4. Section 20.037(e), Business & Commerce Code, is |
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repealed. |
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SECTION 5. The change in law made by this Act applies only |
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to a request for placement, removal, or temporary lifting of a |
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security freeze on a consumer file that is made on or after the |
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effective date of this Act. A request for placement, removal, or |
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temporary lifting of a security freeze on a consumer file that is |
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made before the effective date of this Act is governed by the law in |
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effect on the date the request was made, and the former law is |
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continued in effect for that purpose. |
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SECTION 6. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |