Amendment #1 to H4806

An Act relative to consumer protection from security breaches

The committee on Bills in the Third Reading recommends that the bill be amended The committee on Bills in the Third Reading, to whom was referred the Engrossed bill relative to consumer protection from security breaches (House, No. 4806), being sections 3 and 10 contained in the engrossed Bill, which was returned by His Excellency the Governor with recommendation of amendment specified by him (for message see House, No. 4873), Reports recommending that the amendment recommended by His Excellency, the Governor, be considered in the following form:

By striking out section 3 and inserting in place thereof the following section:

“SECTION 3.  Said chapter 93 is hereby further amended by inserting after section 51A the following section:-

(a) Section 51B.  Except for the purposes described in paragraphs (1), (4), and (5) of subsection (a), subparagraphs (A), (C), (D) and (E) of paragraph (3) of subsection (a), and subsection (c) of 15 U.S.C. section 1681b and subclause (i) of clause (3) of subsection (a) of section 51, a user shall not obtain, use or seek the consumer report of a consumer unless the user: (i) obtains the prior written, verbal or electronic consent of the consumer, as is appropriate for the manner in which the transaction or extension of credit was negotiated or entered into; and (ii) discloses, prior to obtaining the consumer’s consent, the user’s reason for accessing the consumer report to the consumer.

(b) Nothing in this section shall prohibit a user who has already secured the consent of the consumer, or an investor or potential investor of an existing credit obligation, from obtaining a consumer report in connection with: (i) the same transaction; (ii) reviewing an existing account; (iii) increasing the credit line on an existing account; (iv) taking collection action on an existing account; (v) providing products and services or offering of products and services to an existing customer’s account; or (vi) any other permissible purpose pursuant to paragraphs (1), (4), and (5) of subsection (a), or subparagraphs (A), (C), (D) or (E) of paragraph (3) of subsection (a), or subsection (c) of 15 U.S.C. section 1681b, or pursuant to subclause (i) of clause (3) of subsection (a) of section 51.

(c) A user shall not require or request that a consumer waive this section and any such waiver shall be void.  Failure to comply with this section shall constitute an unfair practice under clause (a) of section 2 of chapter 93A.

(d) Notwithstanding the restrictions of this section, the department of children and families may obtain a consumer report for any child in the department’s custody who is 14 years of age or older without obtaining the consent of the child or disclosing to the child the department’s reason for accessing the consumer report in order to fulfill the department’s obligations pursuant to 42 U.S.C. 675(5)(I) and Public Law 113-183 or any other similar requirement of federal law.” ; and

in section 10 by adding the following subsection:

“(f) The department of consumer affairs and business regulation may promulgate regulations interpreting and applying this section and section 3A.”