General Assembly: 82 (2008 Regular GA) - Chapter 1063 - Identity theft and consumer credit reports — security freeze

Published: 2008-04-11

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.


Sec. 2. Section 477A.2, subsection 2, paragraph b, Code Supplement 2007, is amended to read as follows: b. Upon expiration of a franchise, a person may choose to renegotiate a franchise agree-

mentwith amunicipality ormay choose to obtain a certificate of franchise authority under this chapter. An application for a certificate of franchise authority pursuant to this subsectionmay be filed within sixty days prior to the expiration of amunicipal franchise agreement. A certifi- cate of franchise authority obtained pursuant to an application filed prior to the expiration of a municipal franchise agreement shall take effect upon the expiration date of the municipal franchise agreement.

Approved April 11, 2008


CH. 1063CH. 1063



S.F. 2277

ANACT relating to offenses against identity by establishing a procedure to secure credit infor- mation and providing a penalty.

Be It Enacted by the General Assembly of the State of Iowa:

Section 1. NEW SECTION. 714F.1 DEFINITIONS. For the purposes of this chapter, unless the context otherwise requires: 1. “Consumer” means an individual who is a resident of this state. 2. “Consumer credit report” means a consumer report, as defined in 15 U.S.C. § 1681a, that

is used or collected in whole or in part for the purpose of serving as a factor in establishing a consumer’s eligibility for credit for personal, family, or household purposes. 3. “Consumer reporting agency” means the same as defined in 15 U.S.C. § 1681a(f). A con-

sumer reporting agency does not include any of the following: a. A check service or fraud prevention service company that reports on incidents of fraud

or issues authorizations for the purpose of approving or processing negotiable instruments, electronic fund transfers, or similar methods of payment. b. A deposit account information service company that issues reports regarding account

closures due to fraud, overdrafts, automated teller machine abuse, or similar negative infor- mation regarding a consumer to inquiring financial institutions for use only in reviewing the consumer’s request for a deposit account at the inquiring financial institution. c. Any person or entity engaged in the practice of assembling andmerging information con-

tained in a database of one ormore consumer reporting agencies and does notmaintain a per- manent database of credit information from which new consumer reports are produced. 4. “Identification information” means as defined in section 715A.8. 5. “Identity theft” means as used in section 715A.8. 6. “Normal business hours” means Sunday through Saturday, between the hours of 6:00

a.m. and 9:30 p.m., central standard time or central daylight saving time. 7. “Proper identification” means the same as defined in 15 U.S.C. § 1681h(a)(1). 8. “Security freeze” means a notice placed in a consumer credit report, at the request of the

consumer and subject to certain exceptions, that prohibits a consumer reporting agency from releasing the consumer credit report or score relating to the extension of credit.


Sec. 2. NEW SECTION. 714F.2 SECURITY FREEZE. A consumer may submit by certified mail to a consumer reporting agency a written request

for a security freeze. The consumer must submit proper identification and the applicable fee with the request. Within five business days after receiving the request, the consumer reporting agency shall commence the security freeze. Within ten business days after commencing the security freeze, the consumer reporting agency shall send a written confirmation to the con- sumer of the security freeze, a personal identificationnumber or password, other than the con- sumer’s social security number, for the consumer to use in authorizing the suspension or re- moval of the security freeze, including information on how the security freeze may be temporarily suspended.

Sec. 3. NEW SECTION. 714F.3 TEMPORARY SUSPENSION. 1. A consumermay request that a security freezebe temporarily suspended toallow thecon-

sumer reporting agency to release the consumer credit report for a specific time period. The consumer reporting agency may develop procedures to expedite the receipt and processing of requests which may involve the use of telephones, facsimile transmissions, the internet, or other electronic media. The consumer reporting agency shall comply with the request within three business days after receiving the consumer’s written request, or within fifteen minutes after the consumer’s request is received by the consumer reporting agency through facsimile, the internet, or other electronic contact method chosen by the consumer reporting agency, or the use of a telephone, during normal business hours. The consumer’s request shall include all of the following: a. Proper identification. b. The personal identification number or password provided by the consumer reporting

agency. c. Explicit instructions of the specific time period designated for suspension of the security

freeze. d. Payment of the applicable fee. 2. A consumer reporting agency need not remove a security freeze within the timeframes

provided in subsection 1 if the consumer fails to meet the requirements of subsection 1, or the ability of the consumer reporting agency to remove the security freeze within fifteen minutes is prevented by one of the following: a. An act of God, including a fire, earthquake, hurricane, storm, or similar natural disaster

or phenomenon. b. Unauthorized or illegal acts by a third party, including terrorism, sabotage, riot, vandal-

ism, labor strikes or disputes disrupting operations, or similar occurrences. c. Operational interruption, including electrical failure, unanticipated delay in equipment

or replacement part delivery, computer hardware or software failures inhibiting response time, or similar disruption. d. Governmental action, including emergency orders or regulations, judicial law enforce-

ment action, or similar directives. e. Regularly scheduled maintenance, during other than normal business hours, of the con-

sumer reporting agency’s systems, or updates to the consumer reporting agency’s systems. f. Commercially reasonable maintenance of, or repair to, the consumer reporting agency’s

systems that is unexpected or unscheduled. g. Receipt of a removal request outside of normal business hours.

Sec. 4. NEW SECTION. 714F.4 REMOVAL. A security freeze remains in effect until the consumer requests that the security freeze be

removed. A consumer reporting agency shall remove a security freeze within three business days after receiving a request for removal that includes proper identification of the consumer, the personal identification number or password provided by the consumer reporting agency, and payment of the applicable fee.


Sec. 5. NEW SECTION. 714F.5 FEES. 1. A consumer reporting agency shall not charge any fee to a consumer who is the victim

of identity theft for commencing a security freeze, temporary suspension, or removal if with the initial security freeze request, the consumer submits a valid copy of the police report con- cerning the unlawful use of identification information by another person. 2. A consumer reporting agency may charge a fee not to exceed ten dollars to a consumer

who is not the victim of identity theft for each security freeze, removal, or for reissuing a per- sonal identification number or password if the consumer fails to retain the original number. The consumer reporting agencymay charge a fee not to exceed twelve dollars for each tempo- rary suspension of a security freeze.

Sec. 6. NEW SECTION. 714F.6 THIRD PARTIES. If a third party requests a consumer credit report that is subject to a security freeze, the con-

sumer reporting agencymay advise the third party that a security freeze is in effect. If the con- sumerdoesnot expressly authorize the thirdparty tohave access to the consumer credit report through a temporary suspensionof the security freeze, the third party shall not be given access to the consumer credit report but may treat a credit application as incomplete.

Sec. 7. NEW SECTION. 714F.7 MISREPRESENTATION OF FACT. A consumer reporting agencymay suspend or remove a security freeze upon amaterialmis-

representation of fact by the consumer. However, the consumer reporting agency shall send notice to the consumer in writing prior to suspending or removing the security freeze.

Sec. 8. NEW SECTION. 714F.8 EXCEPTIONS. A security freeze shall not apply to the following persons or entities: 1. Apersonor person’s subsidiary, affiliate, agent, or assigneewithwhich the consumer has

or prior to assignment hadanaccount, contract, or debtor-creditor relationship for thepurpos- es of reviewing the account or collecting the financial obligation owing for the account, con- tract, or debt, or extending credit to a consumer with a prior or existing account, contract, or debtor-creditor relationship. “Reviewing the account” includes activities related to account maintenance, monitoring, credit line increases, and account upgrades and enhancements. 2. A subsidiary, affiliate, agent, assignee, or prospective assignee of a person to whom ac-

cess has been granted under a temporary suspension for purposes of facilitating the extension of credit or another permissible use. 3. A person acting pursuant to a court order, warrant, or subpoena. 4. Child support enforcement officials when investigating a child support case pursuant to

Title IV-D or Title XIX of the federal Social Security Act. 5. The department of human services or its agents or assignees acting to investigate fraud

under the medical assistance program. 6. The department of revenue or local taxing authorities; or any of their agents or assignees,

acting to investigate or collect delinquent taxes or assessments, including interest and penal- ties and unpaid court orders, or to fulfill any of their other statutory or other responsibilities. 7. A person’s use of credit information for prescreening as provided by the federal Fair

Credit Reporting Act. 8. A person for the sole purpose of providing a credit file monitoring subscription service

to which the consumer has subscribed. 9. A consumer reporting agency for the sole purpose of providing a customer with a copy

of the consumer credit report upon the consumer’s request. 10. A person’s use of a consumer credit report in connectionwith the business of insurance.

Sec. 9. NEW SECTION. 714F.9 WRITTEN CONFIRMATION. After a security freeze is in effect, a consumer reporting agency may post a name, date of

birth, social security number, or address change in a consumer credit report provided written


confirmation is sent to the consumer within thirty days of posting the change. For an address change,written confirmation shall be sent to both thenewand former addresses. Written con- firmation is not required to correct spelling and typographical errors.

Sec. 10. NEW SECTION. 714F.10 WAIVER VOID. A waiver by a consumer of the provisions of this chapter is contrary to public policy, and is

void and unenforceable.

Sec. 11. NEW SECTION. 714F.11 ENFORCEMENT. A person who violates this chapter violates section 714.16, subsection 2, paragraph “a”. All

powers conferred upon the attorney general to accomplish the objectives and carry out the du- ties prescribed in section 714.16 are also conferred upon the attorney general to enforce this chapter, including but not limited to the power to issue subpoenas, adopt rules, and seek in- junctive relief and amonetary award for civil penalties, attorney fees, and costs. Additionally, the attorney generalmay seek and recover the greater of five hundred dollars or actual damag- es for each customer injured by a violation of this chapter.

Approved April 11, 2008


CH. 1064CH. 1064



S.F. 2289

ANACT concerning state educational assistance to children of deceased veterans and thewar orphans educational assistance fund, and including an effective date and retroactive ap- plicability provision.

Be It Enacted by the General Assembly of the State of Iowa:

Section 1. Section 35.8, Code 2007, is amended to read as follows: 35.8 WAR ORPHANS EDUCATIONAL ASSISTANCE FUND. Awar orphans educational assistance fund is created as a separate fund in the state treasury

under the control of the department of veterans affairs. Any money appropriated for the pur- pose of assisting in the education of orphaned children of veterans, as defined in section 35.1, or the education of a child as provided in section 35.9, subsection 2, shall be deposited in the war orphans educational assistance fund. Notwithstanding section 8.33, any unexpended or unencumbered moneys remaining in the fund at the end of the fiscal year shall not revert, but shall remain available for expenditure for purposes of this section in succeeding fiscal years.

Sec. 2. Section 35.9, subsection 2, Code 2007, is amended to read as follows: 2. a. Upon application by a child who has lived in the state of Iowa for two years preceding

application for state educational assistance is less than thirty-one years of age, and who is the child of a person who died on or after September 11, 2001, during active federal military ser- vice while serving in the armed forces or during active federal military service in the Iowa na- tional guard or other military component of the United States, and who at the time of entering into active military service had maintained the person’s residence in the state for a period of