article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Consumer Identity Protection and Security Act''. SEC. 2. SECURITY FREEZES. The Fair Credit Reporting Act (15 U.S.C. 1601 et seq.) is amended by inserting after section 605B the following: ``SEC. 605C. SECURITY FREEZES. ``(a) In General.--A consumer reporting agency shall place a security freeze on a private information file when requested by the consumer to whom that file relates-- ``(1) by certified mail, ``(2) by telephone by providing certain sensitive personal information, or ``(3) through a secure electronic mail connection if such connection is made available by the consumer reporting agency. ``(b) Timing.--A consumer reporting agency shall place the requested security freeze on the private information file no later than 2 business days after receiving a written or telephone request from the consumer or 24 hours after receiving a secure electronic mail request. ``(c) Confirmation.--Within 2 business days after placing a security freeze on a private information file under subsection (a), the consumer reporting agency that received the request from the consumer shall-- ``(1) send a written confirmation of the security freeze to the consumer; and ``(2) provide to the consumer a unique personal identification number or password to be used by the consumer to authorize access to the private information file or to remove the security freeze on the file. ``(d) Prohibition on Unauthorized Access.--A consumer reporting agency may not grant access to a private information file on which a security freeze has been placed, or release information contained in a such a private information file, except in accordance with the provisions of this section or other Federal law. ``(e) Limited or Temporary Access to Frozen Report.-- ``(1) In general.--Within 3 business days after receiving a request from a consumer upon whose private information file a security freeze has been placed to allow access to that file to a third party, or for a period of time, specified by the consumer, a consumer reporting agency shall make the private information file available in accordance with the request notwithstanding the security freeze. Each consumer reporting agency shall develop procedures involving the use of telephone, facsimile machine, or, upon the consent of the consumer in the manner required by the Electronic Signatures in Global and National Commerce Act (15 U.S.C. 7001 et seq.) for notices legally required to be in writing, by the Internet, e-mail, or other electronic medium, to receive and process a request from a consumer to provide limited or temporary access to the private information file under this section in an expedited manner. ``(2) Request requirements.--A consumer reporting agency may not allow access to a private information file under paragraph (1) unless-- ``(A) the request was made by the consumer by telephone, certified mail, or security electronic mail (except as provided in accordance with procedures established pursuant to the second sentence of paragraph (1)); and ``(B) the consumer provides-- ``(i) proper identification, ``(ii) the unique personal identification number or password provided by the consumer reporting agency under this section; and ``(iii) the proper information regarding the third party who is to receive the private information file or the time period for which the file shall be made available. ``(3) Termination not permitted.--A consumer reporting agency may not terminate a security freeze on the basis of a request under paragraph (1) for limited access to a private information file. ``(f) Termination of Security Freeze.-- ``(1) In general.--A consumer reporting agency shall terminate a security freeze on a private information file if-- ``(A) the consumer requests that the security freeze be terminated; or ``(B) the consumer reporting agency-- ``(i) determines that the security freeze was placed on the private information file due to a material misrepresentation of fact by the consumer; and ``(ii) notifies the consumer in writing not less than 5 business days before terminating the security freeze under this subparagraph. ``(2) Termination requests.--Except as provided in paragraph (1)(B), a consumer reporting agency may not terminate a security freeze on a private information file unless the consumer provides-- ``(A) proper identification; and ``(B) the unique personal identification number or password provided by the consumer reporting agency under this section. ``(3) Timing.--A consumer reporting agency shall terminate a security freeze on a private information file within 3 business days after receiving a request that meets the requirements of this subsection from the consumer to whom the file relates. ``(g) Denial of Third Party Requests.-- ``(1) Requests denied due to security freeze.-- Notwithstanding any other provision of law to the contrary, if a third party's request for access to a private information file is denied because there is a security freeze on it, that third party may treat any application in connection with which the request is made as incomplete. ``(2) Notification of consumer.--If a consumer reporting agency denies a third party's request for access to a private information file on which a security freeze has been placed for any purpose other than account review, the consumer reporting agency shall notify the consumer that it denied the request within 1 business day thereafter. The notice shall identify the third party making the request and the stated purpose of the request. ``(h) Exceptions to Security Freeze.--The provisions of this section do not apply to requests for access to a private information file by-- ``(1) a Federal, State, or local law enforcement agency acting within the scope of its authority or pursuant to a court order, warrant, or subpoena; ``(2) a Federal, State, or local agency that administers a program for establishing an enforcing child support obligations; ``(3) a Federal, State, or local health agency or its agents or assignees acting to investigate fraud; ``(4) a Federal, State, or local tax agency, or its agents or assignees, acting to investigate or collect delinquent taxes or unpaid court orders or to fulfill any of its other statutory responsibilities; ``(5) a person, or the person's subsidiary, affiliate, agent, or assignee with which the consumer has or, prior to assignment, had an account, contract, or debtor-creditor relationship for the purposes of reviewing the account or collecting the financial obligation owing for the account, contract, or debt; ``(6) a subsidiary, affiliate, agent, assignee, or prospective assignee of a person to whom access has been granted under paragraph (5) for purposes of facilitating the extension of credit or other permissible use; or ``(7) any person or entity for the purpose of providing a consumer with a copy of his or her private information file upon the consumer's request. ``(i) Notification of Violation.-- ``(1) Notification.--If a consumer reporting agency violates the requirements of this section with respect to access to a private information file, it shall notify the consumer in writing of the violation within 5 business days. The notice shall include a description of the information to which access was granted and the name and address of the third party to whom such access was granted. ``(2) Complaints to consumer protection agencies.--If a private information file on which a security freeze under this section is accessed in violation of this section, the consumer to whom the file relates may file a complaint with the Federal Trade Commission, the attorney general of the State in which the consumer resides, or any other Federal or State consumer protection agency. ``(j) Application to Other Consumer Reporting Agencies.-- ``(1) Notification.--Whenever a consumer reporting agency receives a request from a consumer under this section that meets the requirements of this section to place a security freeze on his or her private information file under subsection (a), to provide temporary or limited access to such a private information file under subsection (e), or to terminate a security freeze on such a private information file under subsection (f), it shall notify (on a secure basis) every other consumer reporting agency in the United States that it knows, or has reason to know, to maintain a private information file on that consumer of the request. ``(2) Compliance by other consumer reporting agencies.--A consumer reporting agency that receives a reported request under paragraph (1) shall comply with the requirements of this section with respect to that request to the same extent and in the same manner as if it had received the request from the consumer. ``(3) Liability.--A consumer reporting agency responding to a notification from another consumer reporting agency under paragraph (1) is liable for any violation of this section with respect to the request to which the notification relates, to the same extent as if it had received the request from the consumer, except that such an agency shall not be liable for any violation attributable to incorrect information provided in the request from the notifying agency. ``(k) Service Fees and Charges.-- ``(1) Fees prohibited.--A consumer reporting agency may not impose a charge or fee for placing a security freeze on a private information file under subsection (a), for providing limited access to a private information file under subsection (e), or for terminating a security freeze on a private information file under subsection (f). ``(2) Replacement identification codes and passwords.--A consumer reporting agency-- ``(A) may not impose a fee for the replacement or reissue of a lost or forgotten personal identification number or password the first time the replacement or reissue is provided to the consumer; but ``(B) may impose a fee of not more than $5 for a second or subsequent replacement or reissue of such a personal identification number or password.''. SEC. 3. DEFINITIONS. Section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a) is amended by adding at the end the following: ``(y) Definitions Relating to Security Freezes.--For purposes of section 605C, the following definitions shall apply: ``(1) Account review.--The term `account review' means any activity related to account maintenance, monitoring, credit line increases, or account upgrades and enhancements. ``(2) Private information file.-- ``(A) In general.--The term `private information file' means any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer's character, general reputation, personal characteristics, mode of living, employment, or personal financial information to be used in whole or in part for political campaign, charitable solicitation, commercial marketing purposes or as a factor in establishing the consumer's eligibility for-- ``(i) credit or insurance to be used primarily for personal, family, or household purposes; or ``(ii) employment purposes. ``(B) Exclusions.--Except as provided in subparagraph (C), the term `private information file' does not include-- ``(i) any report containing information solely as to transactions or experiences between the consumer and the person making the report; ``(ii) the communication of that information among persons related by common ownership or affiliated by corporate control; or ``(iii) the communication of other information among persons related by common ownership or affiliated by corporate control, if it is clearly and conspicuously disclosed to the consumer that the information may be communicated among such persons and the consumer is given the opportunity, before the time that the information is initially communicated, to direct that such information not be communicated among such persons; ``(iv) any authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card or similar device; or ``(v) any report in which a person who has been requested by a third party to make a specific extension of credit directly or indirectly to a consumer conveys his or her decision with respect to such request, if the third party advises the consumer of the name and address of the person to whom the request was made, and such person makes the required disclosures to the consumer under Federal law. ``(C) Restriction on sharing of medical information.--Except for information or any communication of information disclosed as provided in Federal law, the exclusions in subparagraph (B) do not apply with respect to information disclosed to any person related by common ownership or affiliated by corporate control, if the information is-- ``(i) medical information; ``(ii) an individualized list or description based on the payment transactions of the consumer for medical products or services; or ``(iii) an aggregate list of identified consumers based on payment transactions for medical products or services.''. SEC. 4. REGULATIONS. (a) Rulemaking Proceeding.--Within 90 days after the date of enactment of this Act, the Federal Trade Commission shall initiate a rulemaking proceeding to provide rules, guidelines, and criteria for compliance with the requirements of section 605C of the Fair Credit Reporting Act, as added by this Act, including-- (1) rules necessary to implement the provisions of that section 605C that include required contents for a request for a security freeze, criteria for identification verification of the requesting party, and consumer notification requirements to ensure that consumers are aware of their rights under that section; (2) rules to ensure that a request for a security freeze on a private information file, a request from a consumer for limited or temporary access to a private information file, or a requested termination of such a freeze under that section, will be communicated by the consumer reporting agency receiving the request to other consumer reporting agencies, as required by subsection (j) of that section, and implemented by those agencies in a timely manner; and (3) rules to provide for the application of that section in a manner that does not conflict with any other provision of Federal law governing the acquisition, maintenance, disposition, or access to information contained in a private information file. (b) Final Rule.--The Commission shall issue final rules pursuant to the proceeding initiated under subsection (a) within 1 year after the date of enactment of this Act.
summary: Consumer Identity Protection and Security Act - Requires a consumer reporting agency to place a security freeze on a private information file upon consumer request, subject to waiver by such consumer with respect to limited or temporary access to such file to a particular third party. Identifies federal, state, and local agencies permitted access to such frozen information files. Grants the Federal Trade Commission and specified federal agencies enforcement powers for violations of this Act. Empowers the consumer to file a civil action in any court if a consumer reporting agency violates the requirements of this Act. Prohibits a consumer reporting agency from imposing service fees or charges for implementing the consumer security freeze requests authorized under this Act.