LRBs0119/1
ARG&MDK:kjf:jf
2013 - 2014 LEGISLATURE
SENATE SUBSTITUTE AMENDMENT 1,
TO SENATE BILL 283
September 26, 2013 - Offered by Senator Schultz.
SB283-SSA1,1,2 1An Act to create 100.545 of the statutes; relating to: restricting the release of
2credit information about certain protected individuals and providing a penalty.
Analysis by the Legislative Reference Bureau
Current law generally allows an individual to prohibit a consumer reporting
agency (CRA) from releasing the individual's consumer report (credit report) for any
purpose related to the extension of credit without the individual's prior
authorization. If an individual makes a proper request to a CRA, provides proper
identification, and pays any applicable fee, the CRA must include a "security freeze"
on the individual's credit report. A CRA may not release an individual's credit report
for an extension of credit if the report includes a security freeze. There are various
exceptions to these requirements, including CRAs to which the requirements do not
apply and exceptions allowing a CRA to release an individual's credit report that
includes a security freeze for specified purposes or under specified circumstances.
Current law also includes procedures for an individual to authorize release of a credit
report that includes a security freeze. In addition, a CRA must remove a security
freeze upon an individual's request, but may charge a fee to do so.
This substitute amendment provides for additional security freezes by allowing
representatives to obtain security freezes on behalf of protected consumers. The
substitute amendment defines a "protected consumer" as either: 1) an individual
who is under 16 years old; or 2) an individual for whom a guardian or conservator
has been appointed. The substitute amendment defines a "representative" as a

person who provides "sufficient proof of authority" to act on behalf of a protected
consumer, which is defined to include: 1) a court order; 2) a power of attorney; or 3)
a notarized statement describing the authority to act on behalf of a protected
consumer. Under the substitute amendment, a representative may request a
security freeze for a protected consumer by providing a CRA with the sufficient proof
of authority described above, as well as "sufficient proof of identification" of both the
representative and protected consumer. The substitute amendment defines
"sufficient proof of identification" to include: 1) a social security number (SSN) or
copy of a SSN card; 2) a certified or official copy of a birth certificate; or 3) a copy of
a motor vehicle operator's license or identification card.
If a CRA receives a representative's request for a security freeze on behalf of a
protected consumer, and the CRA already has a file on the protected consumer, the
CRA must place a security freeze that prohibits the CRA from releasing the protected
consumer's credit report. If the CRA does not have a file on the protected consumer,
the CRA must place a security freeze by creating a record identifying the protected
consumer. The substitute amendment prohibits using the record for credit
considerations. The substitute amendment requires a CRA to verify that it has no
file by checking names and SSNs in its existing files. The substitute amendment
requires a CRA to place a security freeze within 30 days after receiving a request that
complies with the substitute amendment, regardless of whether the CRA already
has a file on the protected consumer. Upon placement of a security freeze, the CRA
may not release the protected consumer's credit report, any information derived from
the credit report, or any record created under the substitute amendment, unless the
security freeze is removed as discussed below.
The substitute amendment also does the following:
1. Creates procedures for representatives and protected consumers to have
CRAs remove security freezes and allows CRAs to remove security freezes based on
material misrepresentation of fact by representatives or protected consumers.
2. Allows CRAs to charge a reasonable fee not exceeding $10 for placing or
removing security freezes, but prohibits fees in cases involving identity theft or
protected consumers under 16 years old who already have files at CRAs.
3. Creates exceptions from the substitute amendment's requirements,
including the exceptions that apply to security freeze restrictions under current law,
as well as exceptions for information used for criminal records, fraud prevention or
detection, personal loss history information, or certain background screening
purposes.
4. Allows the Department of Agriculture, Trade and Consumer Protection and
the Department of Justice to bring actions to enforce the substitute amendment's
requirements.
5. Subjects a person who violates the substitute amendment to a civil forfeiture
of not more than $1,000 per violation.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB283-SSA1,1
1Section 1. 100.545 of the statutes is created to read:
SB283-SSA1,3,3 2100.545 Security freezes for protected consumers. (1) Definitions. In
3this section:
SB283-SSA1,3,44 (a) "Consumer report" has the meaning given in 15 USC 1681a (d).
SB283-SSA1,3,55 (b) "Consumer reporting agency" has the meaning given in s. 15 USC 1681a (f).
SB283-SSA1,3,66 (c) "Protected consumer" means an individual who is one of the following:
SB283-SSA1,3,87 1. Under the age of 16 years at the time a request for the placement of a security
8freeze is made under sub. (3) (a).
SB283-SSA1,3,99 2. An individual for whom a guardian or conservator has been appointed.
SB283-SSA1,3,1110 (d) "Record" means a compilation of information about a protected consumer
11that satisfies all of the following:
SB283-SSA1,3,1212 1. The compilation identifies the protected consumer.
SB283-SSA1,3,1413 2. The compilation is created by a consumer reporting agency solely for the
14purpose of complying with this section.
SB283-SSA1,3,1615 (e) "Representative" means a person who provides to a consumer reporting
16agency sufficient proof of authority to act on behalf of a protected consumer.
SB283-SSA1,3,1717 (f) "Security freeze for a protected consumer" means one of the following:
SB283-SSA1,3,2118 1. If a consumer reporting agency does not have a file pertaining to a protected
19consumer, a restriction placed on the protected consumer's record that prohibits,
20except as provided in this section, the consumer reporting agency from releasing the
21protected consumer's record.
SB283-SSA1,4,222 2. If a consumer reporting agency has a file pertaining to the protected
23consumer, a restriction placed on the protected consumer's credit report that
24prohibits, except as provided in this section, the consumer reporting agency from

1releasing the protected consumer's credit report or any information derived from the
2protected consumer's credit report.
SB283-SSA1,4,53 (g) "Sufficient proof of authority' means documentation that shows a
4representative has authority to act on behalf of a protected consumer, including any
5of the following:
SB283-SSA1,4,66 1. An order issued by a court.
SB283-SSA1,4,77 2. A lawfully executed and valid power of attorney.
SB283-SSA1,4,98 3. A written, notarized statement signed by a representative that expressly
9describes the authority of the representative to act on behalf of a protected consumer.
SB283-SSA1,4,1210 (h) "Sufficient proof of identification" means information or documentation
11that identifies a protected consumer or a representative of a protected consumer,
12including any of the following:
SB283-SSA1,4,1413 1. A social security number or a copy of a social security card issued by the social
14security administration.
SB283-SSA1,4,1615 2. A certified or official copy of a birth certificate issued by the entity authorized
16to issue the birth certificate.
SB283-SSA1,4,1917 3. A copy of an operator's license issued under ch. 343 or under a comparable
18law of another state, an identification card issued under s. 343.50 or under a
19comparable law of another state, or any other government issued identification.
SB283-SSA1,4,21 20(2) Exceptions. This section does not apply to the use of a protected consumer's
21credit report or record by any of the following:
SB283-SSA1,4,2422 (a) A person administering a credit file monitoring subscription service to
23which the protected consumer has subscribed or   the representative of the protected
24consumer has subscribed on behalf of the protected consumer.
SB283-SSA1,5,3
1(b) A person providing the protected consumer or the protected consumer's
2representative with a copy of the protected consumer's credit report on request of the
3protected consumer or the protected consumer's representative.
SB283-SSA1,5,44 (c) A person exempted under s. 100.54 (8) from the requirements of s. 100.54.
SB283-SSA1,5,55 (d) An insurance company for the purpose of conducting its ordinary business.
SB283-SSA1,5,86 (e) A consumer reporting agency's database or file that consists of information
7concerning, and used for, one or more of the following, but not for credit granting
8purposes:
SB283-SSA1,5,99 1. Criminal record information.
SB283-SSA1,5,1010 2. Fraud prevention or detection.
SB283-SSA1,5,1111 3. Personal loss history information.
SB283-SSA1,5,1212 4. Employment, tenant, or other background screening.
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