LRB-0903/1
RJM:kmg:cph
2003 - 2004 LEGISLATURE
February 20, 2003 - Introduced by Representatives Schneider, Albers, Bies,
Coggs, Colon, J. Lehman, McCormick, Musser, Sinicki, Ainsworth and
Boyle, cosponsored by Senators Erpenbach and Risser. Referred to
Committee on Financial Institutions.
AB83,1,2
1An Act to create 138.25 of the statutes;
relating to: credit card records and
2providing a penalty.
Analysis by the Legislative Reference Bureau
Current law is silent regarding a person's authority to sell information about
holders of credit cards. Under this bill, a person (which includes a corporation) may
not sell information about Wisconsin residents that is obtained from credit card
transaction records. The bill provides for certain exceptions from this prohibition.
First, the bill excepts disclosures to credit reporting agencies for the purpose of
preparing a credit report and disclosures by credit reporting agencies. The bill also
contains certain exceptions for disclosing information to affiliates of the person
making the disclosure and to contractors or agents of the issuer for the purpose of
performing functions for or on behalf of the issuer. Persons violating the disclosure
provisions created in the bill are subject to a forfeiture of not more than $10,000 for
each violation. The bill also authorizes the Department of Justice to bring actions
in circuit court to enjoin violations of the disclosure provisions.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB83, s. 1
3Section
1. 138.25 of the statutes is created to read:
AB83,1,4
4138.25 Credit card records. (1) Definitions. In this section:
AB83,2,2
1(a) "Affiliate," when used in relation to any person, means a company that
2controls, is controlled by, or is under common control with the person.
AB83,2,33
(b) "Cardholder" has the meaning given in s. 943.41 (1) (b).
AB83,2,44
(c) "Consumer report" has the meaning given in
15 USC 1681a (d).
AB83,2,55
(d) "Consumer reporting agency" has the meaning given in
15 USC 1681a (f).
AB83,2,66
(e) "Fair Credit Reporting Act" means
15 USC 1681 to
1681v, as amended.
AB83,2,77
(f) "Financial transaction card" has the meaning given in s. 943.41 (1) (em).
AB83,2,88
(g) "Issuer" has the meaning given in s. 943.41 (1) (f).
AB83,2,12
9(2) Disclosure prohibited. Except as provided in sub. (3), a person may not
10disclose to another person, for money or anything else of value, any information or
11data about a cardholder who is a resident of this state that is obtained by the person
12from financial transaction card transaction records.
AB83,2,14
13(3) Exceptions. A person may disclose information about a cardholder if any
14of the following applies:
AB83,2,1715
(a) The disclosure is made to a consumer reporting agency for purposes of a
16consumer report or by a consumer reporting agency as authorized under the Fair
17Credit Reporting Act.
AB83,2,2218
(b) The disclosure is made to an affiliate of the person making the disclosure.
19The affiliate may not disclose any information received pursuant to this paragraph
20to a person other than the person who initially disclosed the information to the
21affiliate, unless the person who initially disclosed the information to the affiliate
22could make the disclosure under this section.
AB83,3,223
(c) If the issuer of the financial transaction card is a retailer, the disclosure is
24made to or by contractors or agents of the issuer for the purposes of performing
25functions for or on behalf of the issuer. The contractor or agent may not disclose any
1information received pursuant to this paragraph to a person other than the issuer,
2unless the issuer could make the disclosure under this section.
AB83,3,5
3(4) Forfeiture. A person who violates sub. (2) may be required to forfeit not
4more than $10,000 for each violation. Each disclosure of information or data about
5one cardholder constitutes a separate violation.
AB83,3,8
6(5) Injunction. The department of justice may commence an action in circuit
7court in the name of the state to restrain by temporary or permanent injunction any
8act or practice constituting a violation of sub. (2).
