[Congressional Record Volume 149, Number 129 (Thursday, September 18, 2003)]
[Senate]
[Pages S11723-S11726]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS--SEPTEMBER 17, 
                                  2003

      By Mr. AKAKA (for himself and Mr. Inouye):
  S. 1632. A bill to extend eligibility for certain Federal benefits to 
citizens of the Freely Associated States; to the Committee on Finance.
  Mr. AKAKA. Mr. President, I rise today to introduce legislation with 
my friend and colleague from Hawaii, Senator Inouye, to provide certain 
Federal public benefits for citizens of the Freely Associated States 
(FAS) who are residing in the United States. The bill would provide 
eligibility for non-emergency Medicaid, Food Stamps, Temporary 
Assistance to Needy Families, and Supplemental Security Income to FAS 
citizens residing in the United States.
  Citizens from the FAS are citizens from the Republic of the Marshall 
Islands (RMI), Federated States of Micronesia (FSM), and Palau. The 
United States has a very unique relationship with the FSM, RMI, and 
Palau. The Compact of Free Association established these Nations as 
sovereign States responsible for their own foreign policies. However, 
the Freely Associated States remain dependent upon the United States 
for military protection and economic assistance.
  The Compact provides that the United States has the prerogative to 
reject the strategic use of, or military access to, the FAS by other 
countries, which is often referred to as the ``right of strategic 
denial.'' The Compact also provides that the United States may block 
FAS government policies that it deems inconsistent with its duty to 
defend the FAS, which is referred to as the ``defense veto.'' Under the 
Compact, the United States has exclusive military base rights in the 
FAS. In exchange, the United States is required to support the FAS 
economically, with the goal of producing self-sufficiency, and FAS 
citizens are allowed entry into the United States as non-immigrants for 
the purposes of education, medical treatment, and employment.
  The Senate is considering S.J. Res. 16, the Compact of Free 
Association Amendments Act of 2003, which was favorably reported by the 
Senate Committee on Energy and Natural Resources this morning. S.J. 
Res. 16 is the codification of title II of the Compact pertaining to 
economic relations.
  As FAS citizens are allowed free entry into the United States as part 
of the Compact, many FAS citizens reside in the State of Hawaii. Since 
1997, when Hawaii began reporting its impact costs, the State has 
identified over $140 million in costs associated with FAS citizens. In 
2002, the State of Hawaii expended over $32 million in assistance to 
FAS citizens. S.J. Res. 16 provides $30 million in annual funding for 
Compact impact assistance to be shared between the State of Hawaii, 
Guam, the Commonwealth of the Northern Mariana Islands, and American 
Samoa. While this funding is a positive step forward, it does not begin 
to reimburse the affected jurisdictions for the costs associated with 
FAS citizens living in Hawaii.
  The legislation we are introducing today would provide assistance to 
States and territories who have continued to shoulder the majority of 
the costs associated with the Compact. The Federal Government must 
provide appropriate resources to help States meet the needs of the FAS 
citizens--an obligation based on a Federal commitment. It is 
unconscionable for a State or territory to shoulder the entire 
financial burden of providing necessary education, medical, and social 
services to individuals who are residing in that State or territory 
when the obligation is that of the Federal Government. For that reason, 
I am seeking to provide reimbursement of these costs. It is time for 
the Federal Government to take up some of the financial responsibility 
that until now has been carried by the State of Hawaii, CNMI, and Guam, 
by restoring public benefits to FAS citizens.

  This bill would restore eligibility of FAS citizens for non-emergency 
Medicaid. FAS citizens lost many of their public benefits as a result 
of the Personal Responsibility and Work Opportunity (PRWORA) Act of 
1996, including Medicaid coverage. FAS citizens were previously 
eligible for Medicaid as aliens permanently residing under color of law 
in the United States.
  After the enactment of welfare reform, the State of Hawaii could no 
longer claim Federal matching funds for services rendered to FAS 
citizens. Since then, the State of Hawaii, Guam, American Samoa, and 
the Commonwealth of the Northern Mariana Islands have continued to meet 
the health care needs of FAS citizens. The State of Hawaii has used 
State resources to provide Medicaid services to FAS citizens.

[[Page S11724]]

In 2002 alone, the State spent approximately $6.75 million to provide 
Medicaid services without receiving any Federal matching funds.
  There has been an increasing trend in the need for health care 
services among FAS citizens. During the current fiscal year, the number 
of individuals served in the State of Hawaii's Medicaid Program has 
grown from 3,291 to 4,818 people based on the average monthly 
enrollment. This is an increase of 46 percent. For only the first half 
of the fiscal year, the State of Hawaii has spent $4.66 million for the 
Medicaid costs incurred for FAS citizens. These Medicaid costs do not 
reflect additional State expenditures on medical care contracts to care 
for the uninsured, for community health care services, and for the 
activities of the Department of Health's Communicable Disease Branch.
  This bill would also provide eligibility for FAS citizens residing in 
the United States to participate in the Temporary Assistance for Needy 
Families and Supplemental Security Income programs. According to 
Hawaii's Attorney General, financial assistance in the form of the 
Temporary Assistance to Other Needy Families (TAONF) program, a State 
program, provided $4.5 million to FAS citizens in State Fiscal Year 
2002. Of this total, $390,000 was provided through the General 
Assistance program, which supports individuals and couples with little 
or no income and who have a temporary, incapacitating medical 
condition; $532,000 supported aged, blind, and disabled FAS citizens 
with little or no income who are not eligible for Federally funded 
Supplemental Security Income; and $3.6 million was spent on the State's 
TAONF program that assists other needy families who are not eligible 
for Federal funding under the Temporary Assistance to Needy Families 
program. The number of FAS citizens served by the Hawaii Department of 
Human Services has increased by almost 20 percent in the span of one 
year alone. The financial assistance that the State of Hawaii provides 
to FAS citizens in the form of TAONF is a great support to those 
families attempting to achieve economic stability, but it has a 
significant financial impact on the State's budget.
  The bill would also provide eligibility for the Food Stamp Program. 
The Food Stamp Program serves as the first line of defense against 
hunger. It is the cornerstone of the Federal food assistance program 
and provides crucial support to needy households and those making the 
transition for welfare to work. We have partially addressed the 
complicated issue of alien eligibility for public benefits such as food 
stamps, but again, I must say it is just partial. Not only should all 
legal immigrants receive these benefits, but so too citizens of the 
FAS. Exclusion of FAS citizens from Federal, State, or local public 
benefits or programs is an unintended and misguided consequence of the 
welfare reform law.
  We allow certain legal immigrants eligibility in the program. Yet FAS 
citizens, who are not considered immigrants, but who are required to 
sign up for the Selective Service if they are residing in the United 
States, are ineligible to receive food stamps. This bill corrects this 
inequity.
  I look forward to working with my colleagues to enact this measure 
which is of critical importance to my State of Hawaii, which has borne 
the costs of these benefits for FAS citizens living in Hawaii for the 
past 17 years.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1632

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. EXCEPTION FOR CITIZENS OF FREELY ASSOCIATED 
                   STATES.

       (a) In General.--Section 402(a)(2) of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 (8 U.S.C. 1612(a)(2)) is amended by adding at the end 
     the following:
       ``(M) Exception for citizens of freely associated states.--
     With respect to eligibility for benefits for the specified 
     Federal programs described in subparagraphs (A) and (B) of 
     paragraph (3), paragraph (1) shall not apply to any 
     individual who lawfully resides in the United States 
     (including territories and possessions of the United States) 
     in accordance with--
       ``(i) section 141 of the Compact of Free Association 
     between the Government of the United States and the 
     Government of the Federated States of Micronesia, approved by 
     Congress in the Compact of Free Association Amendments Act of 
     2003;
       ``(ii) section 141 of the Compact of Free Association 
     between the Government of the United States and the 
     Government of the Republic of the Marshall Islands, approved 
     by Congress in the Compact of Free Association Amendments Act 
     of 2003; or
       (iii) section 141 of the Compact of Free Association 
     between the Government of the United States and the 
     Government of Palau, approved by Congress in Public Law 99-
     658 (100 Stat. 3672).''.
       (b) Medicaid and TANF Exceptions.--Section 402(b)(2) of the 
     Personal Responsibility and Work Opportunity Reconciliation 
     Act of 1996 (8 U.S.C. 1612(b)(2)) is amended by adding at the 
     end the following
       ``(G) Medicaid exception for citizens of freely associated 
     states.--With respect to eligibility for benefits for the 
     program defined in paragraph (3)(C) (relating to the medicaid 
     program), section 401(a) and paragraph (1) shall not apply to 
     any individual who lawfully resides in the United States 
     (including territories and possessions of the United States) 
     in accordance with a Compact of Free Association referred to 
     in section 402(a)(2)(M).
       ``(H) TANF exception for citizens of freely associated 
     states.--With respect to eligibility for benefits for the 
     program defined in paragraph (3)(A) (relating to the 
     temporary assistance for needy families program), section 
     401(a) and paragraph (1) shall not apply to any individual 
     who lawfully resides in the United States (including 
     territories and possessions of the United States) in 
     accordance with a Compact of Free Association referred to in 
     section 402(a)(2)(M).''.
       (c) Qualified Alien.--Section 431(b) of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 (8 U.S.C. 1641(b)) is amended--
       (1) in paragraph (6), by striking ``or'' at the end;
       (2) in paragraph (7), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(8) an individual who lawfully resides in the United 
     States (including territories and possessions of the United 
     States) in accordance with a Compact of Free Association 
     referred to in section 402(a)(2)(M).''.
                                 ______
                                 
      By Mr. CORZINE:
  S. 1633. A bill to require financial institutions and financial 
services providers to notify customers of the unauthorized use of 
personal information, to amend the Fair Credit Reporting Act to require 
fraud alerts to be included in consumer credit files in such cases, and 
to provide customers with enhanced access to credit reports in such 
cases; to the Committee on Banking, Housing, and Urban Affairs.
  Mr. CORZINE. Mr. President, I rise today to introduce legislation, 
the Identity Theft Notification and Credit Restoration Act, to help 
prevent Americans from being victimized by the growing problem of 
identity theft. The bill would require financial institutions to notify 
consumers, credit reporting agencies and law enforcement entities when 
their security information systems have been breached in a manner that 
compromises the protection of their customers' personal financial 
information. By increasing awareness of identity theft and empowering 
consumers, early on, about potential threats, the legislation can help 
close the window of opportunity that criminals now exploit to abuse, 
and wreak financial devastation, on unsuspecting individuals.
  There is no doubt that we should be doing all we can to reduce the 
threat of identity theft to consumers, and the harm it brings to our 
economy. Today, identity theft is the single most frequent consumer-
related crime in the United States and it is growing at an alarming 
rate.
  According to the Federal Trade Commission (FTC), reported instances 
of identity theft rose 88 percent in 2002, to 380,000 from 220,000 in 
2001. And that does not even come close to reflecting the bigger threat 
posed by identity theft. A recent FTC survey suggests that the actual 
number of identity theft occurrences probably was in the ten million 
range--and that was last year alone. Over the past five years, over one 
in ten Americans has been a victim of identity theft. And I do not know 
anyone who does not have a close friend or family member who has been a 
victim of identity theft. It truly can happen to anyone, anywhere, at 
any time.
  The cost of this crime also is astounding. In situations in which 
offenders use stolen information to open new credit accounts, identity 
thieves abuse victims' credit to purchase an average of more than 
$10,000 in goods and services. And those costs grow as identity thieves 
become savvier and

[[Page S11725]]

more brazen. From a macro-economic perspective, the damage is equally 
astounding. Last year, consumers spent an estimated five billion 
dollars in out-of-pocket expenses to cover losses attributed to 
identity theft.
  This data underscores the magnitude of the growing problem. But it is 
one that can be mitigated, when detected early on. The FTC has reported 
that early discovery, and disclosure, of identity theft directly 
reduces the time and money victims must invest to undo the damage 
wreaked upon them. When identity theft is uncovered in less than 6 
months, most consumers do not incur any costs. But, when this fraud is 
unnoticed for more than 6 months, an astounding 60 percent of victims 
must make payments out of their own pocket to cover the costs--and 
those numbers are often in the thousands of dollars.
  Consumers' experiences and the FTC's data demonstrate that awareness 
and notification are critical to reducing the harm that identity theft 
inflicts upon consumers. My bill, the Identity Theft Notification and 
Credit Restoration Act is based on three key principles--disclosure, 
prevention and credit restoration.
  First, the bill would require financial institutions to promptly 
disclose to affected customers, credit reporting agencies, and law 
enforcement when their information systems, either computerized or 
paper records, have been breached in a manner that compromises the 
security, confidentiality, or integrity of the ``personal financial 
information'' of that institution's customers.
  Second, the bill requires credit reporting agencies, upon 
notification of the breach, to place ``fraud alerts'' in the credit 
files of the affected individuals. This red flag will alert issuers of 
credit to undertake enhanced preauthorization procedures prior to 
issuing credit in the name of an individual who has this alert on their 
credit file, an important step that should prevent the fraudulent 
issuance of credit in the name of an identity theft victim.
  Finally, the bill provides victims of identity theft with access to 
four credit reports the year following the theft of their identity, to 
ensure that inaccurate and credit damaging information resulting from 
the identity theft does not end up on their credit file.
  The bill also improves the ability of all consumers to monitor the 
content, and accuracy, of the information contained in their individual 
credit file by providing them with access to one free credit report, 
and their credit score, per year.
  Congress has taken important steps towards minimizing the threat of 
identity theft. The most important was recognizing the problem and 
making identity theft a Federal crime in 1998. Since then, other steps 
have been taken. Industry groups are proactively combating identity 
theft--by using cutting-edge data encryption and truncating credit card 
numbers. And later this week, the Senate Banking Committee will mark up 
reauthorization of the Fair Credit Reporting Act, which will include an 
entire section dedicated to identity theft protection.
  But we can do more, and we must do more.
  Empowering consumers and increasing awareness of identity theft will 
minimize the risk, and impact, of this particularly harmful crime. This 
bill does just that. I urge my colleagues to support this legislation 
and ask unanimous consent that the text of the Identity Theft 
Notification and Credit Restoration Act be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1633

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Identity Theft Notification 
     and Credit Restoration Act of 2003''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) the privacy and financial security of individuals is 
     increasingly at risk due to the ever more widespread 
     collection of personal information by both the private and 
     public sector;
       (2) credit card transactions, real estate records, consumer 
     surveys, credit reports, and Internet websites are all 
     sources of personal information and form the source material 
     for identity thieves;
       (3) identity theft is one of the fastest growing crimes 
     committed in the United States, and identity theft has become 
     one of the major law enforcement challenges of the new 
     economy, as vast quantities of sensitive personal information 
     are now vulnerable to criminal interception and misuse;
       (4) criminals who steal personal information use the 
     information to open fraudulent credit card accounts, write 
     bad checks, buy products, and commit other financial crimes 
     with assumed financial identities;
       (5) in 2002, more than 160,000 people notified the Federal 
     Trade Commission that they had been victims of identity 
     theft, more than 3 times the number reported in 2000;
       (6) identity theft is costly to consumers and to the United 
     States marketplace;
       (7) victims of identity theft are often required to contact 
     numerous Federal, State, and local law enforcement agencies, 
     consumer credit reporting agencies, and creditors over many 
     years, as each event of fraud arises;
       (8) the Government, financial institutions, financial 
     service providers, and credit reporting agencies that handle 
     sensitive personal information of consumers have a shared 
     responsibility to protect the information from identity 
     thieves, to assist identity theft victims, and to mitigate 
     the harm that results from fraud perpetrated in the name of 
     the victim; and
       (9) the private sector can better protect consumers by 
     improving customer notification, implementing effective fraud 
     alerts, affording greater consumer access to credit reports, 
     and establishing other financial identity theft prevention 
     measures.

     SEC. 3. TIMELY NOTIFICATION OF UNAUTHORIZED ACCESS TO 
                   PERSONAL INFORMATION.

       Subtitle B of title V of the Gramm-Leach-Bliley Act (15 
     U.S.C. 6821 et seq.) is amended--
       (1) by redesignating sections 526 and 527 as sections 528 
     and 529, respectively; and
       (2) by inserting after section 525 the following:

     ``SEC. 526. NOTIFICATION TO CUSTOMERS OF UNAUTHORIZED ACCESS 
                   TO PERSONAL INFORMATION.

       ``(a) Definitions.--In this section--
       ``(1) the term `breach'--
       ``(A) means unauthorized acquisition of computerized data 
     or paper records which compromises the security, 
     confidentiality, or integrity of personal information 
     maintained by or on behalf of a financial institution; and
       ``(B) does not include a good faith acquisition of personal 
     information by an employee or agent of a financial 
     institution for a business purpose of the institution, if the 
     personal information is not subject to further unauthorized 
     disclosure; and
       ``(2) with respect to a customer of a financial 
     institution, the term `personal information' means the first 
     name or first initial and last name of the customer, in 
     combination with any one or more of the following data 
     elements, when either the name or the data element is not 
     encrypted:
       ``(A) A social security number.
       ``(B) A driver's license number or other officially 
     recognized form of identification.
       ``(C) A credit card number, debit card number, or any 
     required security code, access code, or password that would 
     permit access to financial account information relating to 
     that customer.
       ``(b) Notification Relating to Breach of Personal 
     Information.--
       ``(1) Financial institution requirement.--In any case in 
     which there has been a breach of personal information at a 
     financial institution, or such a breach is reasonably 
     believed to have occurred, the financial institution shall 
     promptly notify--
       ``(A) each customer affected by the violation or suspected 
     violation;
       ``(B) each consumer reporting agency described in section 
     603(p) of the Fair Credit Reporting Act (15 U.S.C. 1681a); 
     and
       ``(C) appropriate law enforcement agencies, in any case in 
     which the financial institution has reason to believe that 
     the breach or suspected breach affects a large number of 
     customers, including as described in subsection (e)(1)(C), 
     subject to regulations of the Federal Trade Commission.
       ``(2) Other entities.--For purposes of paragraph (1), any 
     person that maintains personal information for or on behalf 
     of a financial institution shall promptly notify the 
     financial institution of any case in which such customer 
     information has been, or is reasonably believed to have been, 
     breached.
       ``(c) Timing.--Notification required by this section shall 
     be made--
       ``(1) promptly and without unreasonable delay, upon 
     discovery of the breach or suspected breach; and
       ``(2) consistent with--
       ``(A) the legitimate needs of law enforcement, as provided 
     in subsection (d); and
       ``(B) any measures necessary to determine the scope of the 
     breach or restore the reasonable integrity of the information 
     security system of the financial institution.
       ``(d) Delays for Law Enforcement Purposes.--Notification 
     required by this section may be delayed if a law enforcement 
     agency determines that the notification would impede a 
     criminal investigation, and in any such case, notification 
     shall be made promptly after the law enforcement agency 
     determines that it would not compromise the investigation.
       ``(e) Form of Notice.--Notification required by this 
     section may be provided--
       ``(1) to a customer--
       ``(A) in writing;

[[Page S11726]]

       ``(B) in electronic form, if the notice provided is 
     consistent with the provisions regarding electronic records 
     and signatures set forth in section 101 of the Electronic 
     Signatures in Global and National Commerce Act (15 U.S.C. 
     7001);
       ``(C) if the Federal Trade Commission determines that the 
     number of all customers affected by, or the cost of providing 
     notifications relating to, a single breach or suspected 
     breach would make other forms of notification prohibitive, or 
     in any case in which the financial institution certifies in 
     writing to the Federal Trade Commission that it does not have 
     sufficient customer contact information to comply with other 
     forms of notification, in the form of--
       ``(i) an e-mail notice, if the financial institution has 
     access to an e-mail address for the affected customer that it 
     has reason to believe is accurate;
       ``(ii) a conspicuous posting on the Internet website of the 
     financial institution, if the financial institution maintains 
     such a website; or
       ``(iii) notification through the media that a breach of 
     personal information has occurred or is suspected that 
     compromises the security, confidentiality, or integrity of 
     customer information of the financial institution; or
       ``(D) in such other form as the Federal Trade Commission 
     may by rule prescribe; and
       ``(2) to consumer reporting agencies and law enforcement 
     agencies (where appropriate), in such form as the Federal 
     Trade Commission may prescribe, by rule.
       ``(f) Content of Notification.--Each notification to a 
     customer under subsection (b) shall include--
       ``(1) a statement that--
       ``(A) credit reporting agencies have been notified of the 
     relevant breach or suspected breach; and
       ``(B) the credit report and file of the customer will 
     contain a fraud alert to make creditors aware of the breach 
     or suspected breach, and to inform creditors that the express 
     authorization of the customer is required for any new 
     issuance or extension of credit (in accordance with section 
     605(g) of the Fair Credit Reporting Act); and
       ``(2) such other information as the Federal Trade 
     Commission determines is appropriate.
       ``(g) Compliance.--Notwithstanding subsection (e), a 
     financial institution shall be deemed to be in compliance 
     with this section if--
       ``(1) the financial institution has established a 
     comprehensive information security program that is consistent 
     with the standards prescribed by the appropriate regulatory 
     body under section 501(b);
       ``(2) the financial institution notifies affected customers 
     and consumer reporting agencies in accordance with its own 
     internal information security policies in the event of a 
     breach or suspected breach of personal information; and
       ``(3) such internal security policies incorporate 
     notification procedures that are consistent with the 
     requirements of this section and the rules of the Federal 
     Trade Commission under this section.
       ``(h) Civil Penalties.--
       ``(1) Damages.--Any customer injured by a violation of this 
     section may institute a civil action to recover damages 
     arising from that violation.
       ``(2) Injunctions.--Actions of a financial institution in 
     violation or potential violation of this section may be 
     enjoined.
       ``(3) Cumulative effect.--The rights and remedies available 
     under this section are in addition to any other rights and 
     remedies available under applicable law.
       ``(i) Rules of Construction.--
       ``(1) In general.--Compliance with this section by a 
     financial institution shall not be construed to be a 
     violation of any provision of subtitle (A), or any other 
     provision of Federal or State law prohibiting the disclosure 
     of financial information to third parties.
       ``(2) Limitation.--Except as specifically provided in this 
     section, nothing in this section requires or authorizes a 
     financial institution to disclose information that it is 
     otherwise prohibited from disclosing under subtitle A or any 
     other provision of Federal or State law.
       ``(3) No new recordkeeping obligation.--Nothing in this 
     section creates an obligation on the part of a financial 
     institution to obtain, retain, or maintain information or 
     records that are not otherwise required to be obtained, 
     retained, or maintained in the ordinary course of its 
     business or under other applicable law.''.

     SEC. 4. INCLUSION OF FRAUD ALERTS IN CONSUMER CREDIT REPORTS.

       Section 605 of the Fair Credit Reporting Act (15 U.S.C. 
     1681c) is amended by adding at the end the following:
       ``(g) Fraud Alerts.--
       ``(1) Defined term.--In this subsection, the term `fraud 
     alert' means a clear and conspicuous statement in the file of 
     a consumer that notifies all prospective users of the 
     consumer credit report (or any portion thereof) relating to 
     the consumer, that--
       ``(A) the identity of the consumer may have been used, 
     without the consent of the consumer, to fraudulently obtain 
     goods or services in the name of the consumer; and
       ``(B) the consumer does not authorize the issuance or 
     extension of credit in the name of the consumer, unless the 
     issuer of such credit, upon receiving appropriate evidence of 
     the true identity of the consumer--
       ``(i) obtains express preauthorization from the consumer at 
     a telephone number designated by the consumer; or
       ``(ii) utilizes another reasonable means of communication 
     to obtain the express preauthorization of the consumer.
       ``(2) Inclusion of fraud alert in consumer file.--
       ``(A) Upon notification by financial institution.--A 
     consumer reporting agency shall include a fraud alert meeting 
     the requirements of this subsection in the file of a consumer 
     promptly upon receipt of a notice from a financial 
     institution under section 526(b)(1)(B) of the Gramm-Leach-
     Bliley Act relating to the consumer.
       ``(B) Upon request of consumer.--A consumer reporting 
     agency shall include a fraud alert meeting the requirements 
     of this subsection in the file of a consumer promptly upon 
     receipt of--
       ``(i) a request by the consumer; and
       ``(ii) appropriate evidence of--

       ``(I) the true identity of the person making the request; 
     and
       ``(II) the claim of identity theft forming the basis for 
     the request.

       ``(3) Consumer reporting agency responsibilities.--A 
     consumer reporting agency shall ensure that each person 
     procuring consumer credit information with respect to a 
     consumer is made aware of the existence of a fraud alert in 
     the file of that consumer, regardless of whether a full 
     credit report, credit score, or summary report is requested.
       ``(4) Removal of fraud alerts.--The Federal Trade 
     Commission shall issue appropriate regulations to establish--
       ``(A) the duration of fraud alerts required by this 
     subsection, which standard shall be applied consistently to 
     all consumer reporting agencies, to the extent possible; and
       ``(B) procedures for the removal of fraud alerts included 
     in the files of consumers under this subsection.
       ``(5) Violations.--
       ``(A) Consumer reporting agency.--A consumer reporting 
     agency that fails to notify any user of a consumer credit 
     report of the existence of a fraud alert in that report shall 
     be in violation of this section.
       ``(B) User of a consumer report.--A user of a consumer 
     report that fails to comply with preauthorization procedures 
     contained in a fraud alert in the file of a consumer and 
     issues or extends credit in the name of the consumer to a 
     person other than the consumer shall be in violation of this 
     subsection.
       ``(C) No adverse action based solely on fraud alert.--It 
     shall be a violation of this title for the user of a consumer 
     report to take adverse action with respect to a consumer 
     based solely on the inclusion of a fraud alert in the file of 
     that consumer, as required by this subsection.''.

     SEC. 5. ACCESS TO CREDIT REPORTS AND SCORES.

       (a) No Fee In Certain Cases.--Section 612(c) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681j(c)) is amended to read 
     as follows:
       ``(c) No-Cost Access to Credit Reports and Scores.--
       ``(1) In general.--Upon request of a consumer, and without 
     charge to the consumer, a consumer reporting agency shall 
     make all of the disclosures listed under section 609 to the 
     consumer--
       ``(A) once during each calendar year; and
       ``(B) once every 3 months during the 1-year period 
     beginning on the date on which a fraud alert is included in 
     the file of a consumer under section 605(g).
       ``(2) Fee authorized.--A credit reporting agency may charge 
     a reasonable fee for the costs of disclosures under paragraph 
     (1)(B) to the financial institution providing the 
     notification that is the basis for the subject fraud alert, 
     as required by section 526(b)(1)(B) of the Gramm-Leach-Bliley 
     Act.''.
       (b) Inclusion of Credit Scores.--Section 609(a)(1) of the 
     Fair Credit Reporting Act (15 U.S.C. 1681g(a)(1)) is amended 
     by striking ``except that'' and all that follows through 
     ``predictors'' and inserting ``, including any credit 
     score''.

     SEC. 6. REGULATIONS.

       Not later than 180 days after the date of enactment of this 
     Act, the Federal Trade Commission, after consultation with 
     Federal banking agencies, the Securities and Exchange 
     Commission, and other appropriate financial services 
     regulatory agencies, shall issue final regulations to carry 
     out the amendments made by this Act.

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