A BILL TO BE ENTITLED
AN ACT to authorize the placement of a protected consumer security freeze on a protected consumer's credit report.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 75‑61 reads as rewritten:
"§ 75‑61.  Definitions.
The following definitions apply in this Article:
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(11a)	"Protected Consumer". – An individual (i) who is under the age of 16 at the time a request for the placement of a security freeze is made pursuant to G.S. 75‑63.1 or (ii) who is incapacitated or for whom a guardian or guardian ad litem has been appointed.
(11b)	"Protected Consumer Security Freeze". – A security freeze placed on a protected consumer's credit report or on a protected consumer's file pursuant to G.S. 75‑63.1.
(11c)	"Protected Consumer's File". – A record that (i) identifies a protected consumer; (ii) is created by a consumer reporting agency solely for the purpose of complying with the requirements of G.S. 75‑63.1; and (iii) may not be created or used to consider the protected consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living.
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(13a)	"Representative". – A person who provides to a consumer reporting agency sufficient proof of authority to act on behalf of a protected consumer. 
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(16)	"Sufficient Proof of Authority". – Either of the following:
a.	A certified or official copy of the protected consumer's birth certificate, if the representative is a parent of the protected consumer.
b.	Documentation that shows that a representative has authority to act on behalf of a protected consumer, including:
1.	An order issued by a court of law.
2.	A valid power of attorney.
3.	A written, notarized statement signed by the person that expressly describes the authority of the representative to act on behalf of a protected consumer.
(17)	"Sufficient Proof of Identification". – Information or documentation that identifies a protected consumer or representative, including:
a.	A Social Security number or a copy of a Social Security card issued by the Social Security Administration.
b.	A certified or official copy of a birth certificate issued by the entity authorized to issue the birth certificate.
c.	A copy of a drivers license, an identification card issued by the Division of Motor Vehicles, or any other government‑issued identification.
d.	A copy of a bill, including a bill for telephone, sewer, septic tank, water, electric, oil, or natural gas services, that shows a name and home address."
SECTION 2.  Article 2A of Chapter 75 of the General Statutes is amended by adding a new section to read:
"§ 75‑63.1.  Security freeze for protected consumers.
(a)	Obligation to Place Security Freeze. – A consumer reporting agency shall place a protected consumer security freeze on the protected consumer's credit report or on the protected consumer's file in accordance with subsection (b) of this section within 30 days of all of the following conditions being satisfied:
(1)	The consumer reporting agency receives a request under this section from the protected consumer's representative for the placement of the protected consumer security freeze.
(2)	The protected consumer's representative does all of the following:
a.	Submits the request to the consumer reporting agency at the address or other point of contact and in the manner specified by the consumer reporting agency.
b.	Provides to the consumer reporting agency sufficient proof of identification for both the protected consumer and the representative.
c.	Provides to the consumer reporting agency sufficient proof of authority to act on behalf of the protected consumer.
d.	Pays to the consumer reporting agency a fee as provided in subsection (d) of this section.
(b)	Action Required. – If the placement of a protected consumer security freeze is required under subsection (a) of this section, a consumer reporting agency shall do one of the following, as applicable:
(1)	If no consumer report exists. – If the consumer reporting agency does not have a consumer report pertaining to the protected consumer, the consumer reporting agency shall create a protected consumer's file and place a restriction in the protected consumer's file that prohibits the release of the protected consumer's file, any consumer report subsequently created for the consumer, and any information contained in either document except as provided in this section.
(2)	If a consumer report exists. – If the consumer reporting agency has a consumer report pertaining to the protected consumer, the consumer reporting agency shall place a restriction on the report that prohibits the release of the consumer report and any information contained in the report except as provided in this section.
(c)	Duration of Freeze. – A protected consumer security freeze shall remain in effect until one of the following occurs, in which case the protected consumer security freeze shall be removed within 30 days:
(1)	The protected consumer or the protected consumer's representative requests the consumer reporting agency to remove the protected consumer security freeze by doing all of the following:
a.	Submitting a request for the removal of the protected consumer security freeze to the consumer reporting agency at the address or other point of contact and in the manner specified by the consumer reporting agency.
b.	If the request is being made by the protected consumer, providing to the consumer reporting agency (i) proof that the sufficient proof of authority for the protected consumer's representative is no longer valid and (ii) sufficient proof of identification for the protected consumer.
c.	If the request is being made by the representative of a protected consumer, providing to the consumer reporting agency (i) sufficient proof of identification of the protected consumer and the representative and (ii) sufficient proof of authority to act on behalf of the protected consumer.
d.	Providing to the consumer reporting agency a fee as provided in subsection (d) of this section.
(2)	The consumer reporting agency determines that the protected consumer security freeze was placed based on a material misrepresentation of fact by the protected consumer or the protected consumer's representative.
(d)	Fees. – A consumer reporting agency may charge a reasonable fee for each placement or removal of a protected consumer security freeze in accordance with the following:
(1)	Fee allowed in certain cases. – If a request for placement or removal of a protected consumer security freeze is made by telephone or by mail, a consumer reporting agency may charge a fee to a consumer not to exceed three dollars ($3.00).
(2)	No fee allowed in certain cases. – A fee may not be charged for the placement or removal of a protected consumer security freeze under this section if any of the following conditions are satisfied:
a.	The protected consumer's representative has obtained a report of alleged identity theft or identity fraud against the protected consumer and provides a copy of the report to the consumer reporting agency.
b.	A request for placement or removal of a protected consumer security freeze is for a protected consumer who is under the age of 16 at the time of the request and the consumer reporting agency has a consumer report pertaining to the protected consumer.
c.	A request for placement or removal of a protected consumer security freeze is made electronically.
d.	The protected consumer is over the age of 62.
(3)	No other fees allowed. – No fee other than those authorized under this subsection may be charged for placement or removal of a protected consumer security freeze.
(e)	Exceptions. – Notwithstanding subsection (b) of this section, the placement of a protected consumer security freeze shall not prohibit the release of a protected consumer's consumer report, protected consumer's file, or any information contained in these documents to any of the following:
(1)	The protected consumer when the protected consumer has subscribed to a credit reporting service, as that term is defined in G.S. 75‑134. 
(2)	A representative of the protected consumer when the representative has subscribed on behalf of the consumer to a credit reporting service, as that term is defined in G.S. 75‑134.
(3)	A person providing the protected consumer or the protected consumer's representative with a copy of the protected consumer's consumer report or protected consumer's file at the request of the protected consumer or the protected consumer's representative.
(f)	Violation. – A violation of this section is a violation of G.S. 75‑1.1."
SECTION 3.  G.S. 130A‑101 is amended by adding a new subsection to read:
"(h)	When a birth occurs, the person responsible for preparing the birth certificate under this section shall provide the mother with information about how to request a protected consumer security freeze for the child under G.S. 75‑63.1 and the potential benefits of doing so."
SECTION 4.  This act becomes effective October 1, 2015.