HB 54 (BR 303) - J. Vincent, S. Lee, R. Nelson, A. Simpson, M. Weaver
AN ACT relating to credit reports.
Create new sections of KRS Chapter 367, pertaining to security alerts and security freezes on credit reports; permit a consumer to request a security alert to be placed on a consumer file that is sent to a recipient of a consumer report signifying the fact that the consumer's identity may have been used without the consumer's consent to fraudulently obtain goods or services in the consumer's name; require the security alert to remain in effect for no less than ninety days; permit a consumer to place a security freeze on the consumer's credit report to prohibit release to a third party of any information in the credit report without prior express authorization from the consumer; require the consumer reporting agency to provide the consumer with a personal identification number or password to be used by the consumer to access his or her credit file while the security freeze is in effect; provide for a procedure to permit the consumer to temporarily lift the security freeze; require a security freeze to remain in effect until the consumer requests that the freeze be removed; prohibit application of a security freeze to consumer reports provided to certain entities; permit a consumer reporting agency to impose a reasonable fee for initially placing a security freeze which may not exceed ten dollars; allow a fee of up to eight dollars per request for a temporary lifting of the security freeze; permit these fees to be adjusted for inflation; prohibit any fee if the consumer is sixty-two years of age or older or if the consumer is a victim of identity theft and has a valid police report; permit a consumer damaged by intentional or negligent violation of this Act to bring an action for actual damages, plus reasonable attorney fees, court costs, and other reasonable costs of prosecution of the suits; declare that violation of this Act is an unfair, false, misleading, or deceptive act or practice in the conduct of trade or commerce in violation of KRS 367.170 enforceable by the Attorney General.
HB 54 - AMENDMENTS
HFA (1, J. Vincent) - Amend to create three new sections of KRS Chapter 365, relating to trade practices, to require businesses, when they dispose of customer records not required to be retained, to take reasonable steps to destroy the portions of the records containing personally identifiable information so that the personal information is unreadable or indecipherable; create a civil cause of action for a customer who is injured and can claim damages because of the failure of a business to conform; and amend KRS 434.870, relating to disclosure of financial information, to expand the definition of "person" to include any type of business entity.
HFA (2, J. Vincent) - Amend to clarify definitions; delete "security alert" provisions; exclude insurers and retail establishments that sell their own inventory from security freeze requirements; require the consumer reporting agency to provide a new personal identification number or password within ten business days of a consumer's request for a replacement; establish that a security freeze shall not remain in place longer than seven years from the date the security freeze was put in place; establish that a security freeze does not apply to a consumer report provided to any person or entity using a consumer report in preparation for a civil or criminal action, an insurance company in investigation of a claim, or an insurance company for setting or adjusting a rate or underwriting for property and casualty insurance purposes; provide that a consumer reporting agency may impose a reasonable charge for temporarily lifting or removing a security freeze but cannot charge for the placing of a security freeze when the consumer is a victim of identity theft and has, if requested, provided a valid police report; establish damages for violation of the security freeze requirements; delete references to KRS 367.170.
HFA (3/Title, J. Vincent) - Make title amendment.
HFA (4, J. Vincent) - Retain provisions of HFA 1, except exclude banks, credit unions, and associations from the definition of "business."
HFA (5, J. Vincent) - Retain provisions of HFA 2, except exclude credit unions and associations from security freeze requirements.
(Prefiled by the sponsor(s).)
Oct 6-To: Interim Joint Committee on Banking and Insurance
Jan 3-introduced in House; to Banking and Insurance (H)
Jan 9-reassigned to Judiciary (H)
Feb 1-posting waived; reported favorably, 1st reading, to Calendar
Feb 2-2nd reading, to Rules
Feb 7-floor amendments (1) (2) and (3-title) filed
Feb 8-posted for passage in the Regular Orders of the Day for Thursday, February 9, 2006
Feb 10-floor amendments (4) and (5) filed
Feb 13-3rd reading, passed 97-0 with floor amendments (3-title) (4) and (5)
Feb 14-received in Senate
Feb 16-to Banking and Insurance (S)
Mar 3-reported favorably, 1st reading, to Consent Calendar
Mar 6-2nd reading, to Rules
Mar 13-posted for passage in the Consent Orders of the Day for Tuesday, March 14, 2006
Mar 14-3rd reading, passed 38-0
Mar 15-received in House; enrolled, signed by each presiding officer; delivered to Governor
Mar 24-signed by Governor (Acts ch. 42)