Amendment ID: H4806-1

Amendment 1

relative to consumer protection from security breaches

Ms. Lovely moves to amend the bill 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:-

Section 51B. Except for the purposes described in section 51 or in 15 U.S.C. section 1681b, 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 or other relationship 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.

Nothing 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 consumer’s account: or (vi) any other permissible purpose pursuant to section 51 or 15 U.S.C. section 1681b.

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 be an unfair practice under clause (a) of section 2 of chapter 93A.

Notwithstanding 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. section 675(5)(I), Public Law 113-183 and section 52A, or any other similar requirement of federal or state law.

The department of consumer affairs and business regulation may promulgate regulations interpreting and applying this section.”