HB-6457, As Passed House, September 19, 2006
September 12, 2006, Introduced by Reps. Baxter, Caul, Nitz, Mortimer, Farhat, Pavlov, Casperson, Palsrok, Moore, Ball and Emmons and referred to the Committee on Banking and Financial Services.
A bill to require consumer reporting agencies to report
certain new credit activity to consumers who have registered with
the office of financial and insurance services; and to provide for
the powers and duties of certain state officers and entities.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"consumer identity protection act".
Sec. 2. As used in this act:
(a) The credit authority list shall consist of the names,
addresses, and social security
(b) "Administrator" means the office of financial and
insurance services of the department of labor and economic growth.
(c) "Consumer" means an individual who resides in this state.
(d) "Consumer report" and "consumer reporting agency" mean
those terms as defined in section 603 of the fair credit reporting
act, 15 USC 1681a.
(d) "Credit activity list" means the list of consumers
maintained by the administrator under section 3.
(e) "New activity" means any transaction in which credit is
first extended to a consumer or in which the consumer is a
borrower, debtor, mortgagor, or guarantor or otherwise first
becomes directly or indirectly responsible for any debt or other
credit obligation. New activity does not include an advance on or
transaction involving an existing credit arrangement or a renewal,
modification, or extension of a credit arrangement between the
consumer and a creditor.
(f) "Person" means an individual, partnership, corporation,
limited liability company, association, governmental entity, or
other legal entity.
Sec. 3. (1) Within 120 days after the effective date of this
act, the administrator shall establish a state credit activity
list.
(2) All of the following apply to the credit activity list
established under subsection (1):
(a) The credit activity list shall consist of the names,
addresses, and social security numbers of those consumers who have
registered with the administrator to receive the notifications
described in section 4.
(b) The administrator shall publish the credit activity list
quarterly for use by consumer reporting agencies.
(c) The credit activity list fund is created in the state
treasury. Money received from fees under subdivision (d) shall be
credited to the fund. The state treasurer shall direct the
investment of the fund. The state treasurer shall credit to the
fund interest and earnings from fund investments. Money remaining
in the fund at the end of a fiscal year shall be carried over in
the fund to the next and succeeding fiscal years. Money in the fund
may be appropriated to the administrator to cover the costs of
administering the credit activity list.
(d) The administrator shall establish and collect 1 or both of
the following fees to cover the costs to the administrator for
administering the credit activity list:
(i) Fees charged to consumer reporting agencies for access to
the credit activity list.
(ii) An annual fee charged to consumers for inclusion on the
credit activity list. The administrator shall not charge a consumer
an annual fee of more than $5.00.
Sec. 4. (1) Beginning 90 days after the administrator
establishes a credit activity list under section 3(1), a consumer
reporting agency shall notify a consumer whose name and residential
address are on the then-current version of that credit activity
list of any new activity involving that consumer in the preceding
calendar quarter. The consumer reporting agency shall provide the
notice under this subsection in writing and within a reasonable
time after March 31, June 30, September 30, or December 31, as
applicable. The consumer reporting agency shall provide the notice
described in this subsection electronically to each consumer who
requests electronic notice.
(2) A consumer reporting agency shall not use a credit
activity list or any information from a credit activity list for
any purpose other than meeting the requirements of this act.
(3) The administrator shall not sell or transfer a credit
activity list or any information from a credit activity list to any
person for any purpose unrelated to this act.