S.Amdt. 4444

1. Replaces “with” through page 3, line 2 with new text

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   Struck: with …

   Inserted: or contracts with an appropriate entity or entities, under which such entity shall provide appropriate credit or identity protection monitoring services to veterans, spouses and former spouses of veterans, and members of the Armed Forces (including members of the National Guard and Reserve) affected by the theft of personal information from the Department of Veterans Affairs on May 3, 2006.

   Inserted: (b) Limitation.--The Secretary shall ensure that any contract under subsection (a) permits only those veterans, spouses or former spouses of veterans, and members of the Armed Forces (including members of the National Guard and Reserve) who choose to receive monitoring services under such contract to elect to have personal information monitored by the contractor under such contract.

   Inserted: (c) Fixed Price for Services.--

   Inserted: (1) In general.--Any contract under subsection (a) shall provide services at a fixed price, paid by the Department of Veterans Affairs, for a period of 12 months, beginning on the date of the commencement of the provision of services.

   Inserted: (2) Termination of services after 12 months unless notified in writing.--A contractor described in subsection (a) shall not continue services to affected individuals for more than the 12-month period referred to in paragraph (1), unless the contractor receives written notice of the willingness of the affected individual to assume the cost of service delivery.

   Inserted: (d) Security Freezes for Veterans.--

   Inserted: (1) In general.--The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is amended by inserting after section 605B the following:

   Inserted: "SEC. 605C. SECURITY FREEZES FOR CERTAIN VETERANS.

   Inserted: "(a) Applicability.--This section shall apply with respect to--

   Inserted: "(1) any veteran, as defined in section 101 of title 38, United States Code, who may be a victim of identity theft as a result of the security breach at the Department of Veterans Affairs on May 3, 2006;

   Inserted: "(2) any spouse (or former spouse) of such veteran who the Secretary of Veterans Affairs has conclusively identified as being at risk of identity theft as a result of that security breach; and

   Inserted: "(3) any other person who the Secretary of Veterans Affairs has identified as being at risk of identity theft as a result of that security breach.

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   Inserted: "(b) Security Freezes.--

   Inserted: "(1) Emplacement.--A veteran, spouse, or other person described in subsection (a) may include a security freeze in the file of that veteran, spouse, or other person maintained by a consumer reporting agency described in section 603(p)(1), by making a request to the consumer reporting agency in writing, by telephone, or through a secure electronic connection made available by the consumer reporting agency.

   Inserted: "(2) Consumer disclosure.--If a veteran, spouse, or other person described in subsection (a) requests a security freeze under this section, the consumer reporting agency shall disclose to that individual the process of placing and removing the security freeze and explain to that individual the potential consequences of the security freeze. A consumer reporting agency may not imply or inform a veteran, spouse, or other person described in subsection (a) that the placement or presence of a security freeze on the file of that individual may negatively affect their credit score.

   Inserted: "(c) Effect of Security Freeze.--

   Inserted: "(1) Release of information blocked.--If a security freeze is in place in the file of a veteran, spouse, or other person described in subsection (a), a consumer reporting agency may not release information from the file of that individual to a third party without prior express written authorization from that individual.

   Inserted: "(2) Information provided to third parties.--Paragraph (2) does not prevent a consumer reporting agency from advising a third party that a security freeze is in effect with respect to the file of a veteran, spouse, or other person described in subsection (a). If a third party, in connection with an application for credit, requests access to a consumer file on which a security freeze is in place under this section, the third party may treat the application as incomplete.

   Inserted: "(3) Credit score not affected.--The placement of a security freeze under this section may not be taken into account for any purpose in determining the credit score of the veteran, spouse, or other person to whom the security freeze relates.

   Inserted: "(d) Removal; Temporary Suspension.--

   Inserted: "(1) In general.--Except as provided in paragraph (4), a security freeze under this section shall remain in place until the veteran, spouse, or other person to whom it relates requests that the security freeze be removed. The veteran, spouse, or other person may remove a security freeze on his or her file by making a request to the consumer reporting agency in writing, by telephone, or through a secure electronic connection made available by the consumer reporting agency.

   Inserted: "(2) Conditions.--A consumer reporting agency may remove a security freeze placed in the file of a veteran, spouse, or other person under this section only--

   Inserted: "(A) upon request of the veteran, spouse, or other person, pursuant to paragraph (1); or

   Inserted: "(B) if the agency determines that the file of that veteran, spouse, or other person was frozen due to a material misrepresentation of fact by that veteran, spouse, or other person.

   Inserted: "(3) Notification to consumer.--If a consumer reporting agency intends to remove a security freeze pursuant to paragraph (2)(B), the consumer reporting agency shall notify the veteran, spouse, or other person to whom the security freeze relates in writing prior to removing the freeze.

   Inserted: "(4) Temporary suspension.--A veteran, spouse, or other person described in subsection (a) may have a security freeze under this section temporarily suspended by making a request to the consumer reporting agency in writing or by telephone and specifying beginning and ending dates for the period during which the security freeze is not to apply.

   Inserted: "(e) Response Times; Notification of Other Entities.--

   Inserted: "(1) In general.--A consumer reporting agency shall--

   Inserted: "(A) place a security freeze in the file of a veteran, spouse, or other person under subsection (b) not later than 5 business days after receiving a request from the veteran, spouse, or other person under subsection (b)(1); and

   Inserted: "(B) remove or temporarily suspend a security freeze not later than 3 business days after receiving a request for removal or temporary suspension from the veteran, spouse, or other person under subsection (d).

   Inserted: "(2) Notification of other agencies.--A consumer reporting agency shall notify all other consumer reporting agencies described in section 603(p)(1) of a request under this section not later than 3 days after placing, removing, or temporarily suspending a security freeze in the file of the veteran, spouse, or other person under subsection (b), (d)(2)(A), or (d)(4).

   Inserted: "(3) Implementation by other agencies.--A consumer reporting agency that is notified of a request under paragraph (2) to place, remove, or temporarily suspend a security freeze in the file of a veteran, spouse, or other person shall--

   Inserted: "(A) request proper identification from the veteran, spouse, or other person, in accordance with subsection (g), not later than 3 business days after receiving the notification; and

   Inserted: "(B) place, remove, or temporarily suspend the security freeze on that credit report not later than 3 business days after receiving proper identification.

   Inserted: "(f) Confirmation.--Except as provided in subsection (c)(3), whenever a consumer reporting agency places, removes, or temporarily suspends a security freeze at the request of a veteran, spouse, or other person under subsection (b) or (d), respectively, it shall send a written confirmation thereof to the veteran, spouse, or other person not later than 10 business days after placing, removing, or temporarily suspending the security freeze. This subsection does not apply to the placement, removal, or temporary suspension of a security freeze by a consumer reporting agency because of a notification received under subsection (e)(2).

   Inserted: "(g) ID Required.--A consumer reporting agency may not place, remove, or temporarily suspend a security freeze in the file of a veteran, spouse, or other person described in subsection (a) at the request of the veteran, spouse, or other person, unless the veteran, spouse, or other person provides proper identification (within the meaning of section 610(a)(1)) and the regulations thereunder.

   Inserted: "(h) Exceptions.--This section does not apply to the use of the file of a veteran, spouse, or other person described in subsection (a) maintained by a consumer reporting agency by any of the following:

   Inserted: "(1) A person or entity, or a subsidiary, affiliate, or agent of that person or entity, or an assignee of a financial obligation owing by the veteran, spouse, or other person to that person or entity, or a prospective assignee of a financial obligation owing by the veteran, spouse, or other person to that person or entity in conjunction with the proposed purchase of the financial obligation, with which the veteran, spouse, or other person has or had prior to assignment an account or contract, including a demand deposit account, or to whom the veteran, spouse, or other person issued a negotiable instrument, for the purposes of reviewing the account or collecting the financial obligation owing for the account, contract, or negotiable instrument.

   Inserted: "(2) Any Federal, State, or local agency, law enforcement agency, trial court, or private collection agency acting pursuant to a court order, warrant, subpoena, or other compulsory process.

   Inserted: "(3) A child support agency or its agents or assigns acting pursuant to subtitle D of title IV of the Social Security Act (42 U.S.C. et seq.) or similar State law.

   Inserted: "(4) The Department of Health and Human Services, a similar State agency, or the agents or assigns of the Federal or State agency acting to investigate medicare or medicaid fraud.

   Inserted: "(5) The Internal Revenue Service or a State or municipal taxing authority, or a State department of motor vehicles, or any of the agents or assigns of these Federal, State, or municipal agencies acting to investigate or collect delinquent taxes or unpaid court orders or to fulfill any of their other statutory responsibilities.

   Inserted: "(6) The use of consumer credit information for the purposes of prescreening, as provided for under this title.

   Inserted: "(7) Any person or entity administering a credit file monitoring subscription to which the veteran, spouse, or other person has subscribed.

   Inserted: "(8) Any person or entity for the purpose of providing a veteran, spouse, or other person with a copy of his or her credit report or credit score upon request of the veteran, spouse, or other person.

   Inserted: "(i) Fees.--

   Inserted: "(1) In general.--Except as provided in paragraph (2), a consumer reporting agency may charge a reasonable fee, for placing, removing, or temporarily suspending a security freeze in the file of the veteran, spouse, or other person described in subsection (a), which cost shall be submitted to and paid by the Department of Veterans Affairs, pursuant to procedures established by the Secretary of Veterans Affairs.

   Inserted: "(2) ID theft victims.--A consumer reporting agency may not charge a fee for placing, removing, or temporarily suspending a security freeze in the file of a veteran, spouse, or other person described in subsection (a), if--

   Inserted: "(A) the veteran, spouse, or other person is a victim of identity theft;

   Inserted: "(B) the veteran, spouse, or other person requests the security freeze in writing;

   Inserted: "(C) the veteran, spouse, or other person has filed a police report with respect to the theft, or an identity theft report (as defined in section 603(q)(4), within 90 days after the date on which the theft occurred or was discovered by the veteran, spouse, or other person; and

   Inserted: "(D) the veteran, spouse, or other person provides a copy of the report to the reporting agency.

   Inserted: "(j) Limitation on Information Changes in Frozen Reports.--

   Inserted: "(1) In general.--If a security freeze is in place in the file of a veteran, spouse, or other person described in subsection (a), the consumer reporting agency may not change any of the following official information in that file without sending a written confirmation of the change to the veteran, spouse, or other person within 30 days after the date on which the change is made:

   Inserted: "(A) Name.

   Inserted: "(B) Date of birth.

   Inserted: "(C) Social Security number.

   Inserted: "(D) Address.

   Inserted: "(2) Confirmation.--Paragraph (1) does not require written confirmation for technical modifications of the official information of a veteran, spouse, or other person, including name and street abbreviations, complete spellings, or transposition of numbers or letters. In the case of an address change, the written confirmation shall be sent to both the new address and to the former address of the veteran, spouse, or other person.

   Inserted: "(k) Certain Entity Exemptions.--

   Inserted: "(1) Aggregators and other agencies.--The provisions of this section do not apply to a consumer reporting agency that acts only as a reseller of credit information by assembling and merging information contained in the data base of another consumer reporting agency or multiple consumer reporting agencies, and does not maintain a permanent data base of credit information from which new consumer credit reports are produced.

   Inserted: "(2) Other exempted entities.--The following entities are not required to place a security freeze in the file of a veteran, spouse, or other person described in subsection (a) in accordance with this section:

   Inserted: "(A) A check services or fraud prevention services company, which issues reports on incidents of fraud or authorizations for the purpose of approving or processing negotiable instruments, electronic fund transfers, or similar methods of payments.

   Inserted: "(B) A deposit account information service company, which issues reports regarding account closures due to fraud, substantial overdrafts, ATM abuse, or similar negative information regarding such veteran, spouse, or other person, to inquiring banks or other financial institutions for use only in reviewing the request of such veteran, spouse, or other person for a deposit account at the inquiring bank or financial institution.".

   Inserted: (2) Fees.--Any fee associated with an extended fraud alert or security freeze required by the amendments made by this section that would otherwise be required to be paid by the consumer shall be paid by the Department of Veterans Affairs.

   Inserted: (e) Reporting Requirement.--Not later than 30 days after the date of enactment of this Act, the Secretary of the Department of Veterans Affairs shall submit a report to Congress detailing the expected costs of services provided under this section.

   Inserted: (f) Sense of the Senate.--It is the sense of the Senate that the budget of the Department of Veterans Affairs is stretched to the limit, and that the President should submit a request for supplemental appropriations to pay for the services required by this section to protect the identity security of those affected by the loss of personal data by the Department of Veterans Affairs.

   Original wording

   On page 2, line 7, strike “with” and all that follows through page 3, line 2 and insert the following: “ or contracts with an appropriate entity or entities, under which such entity shall provide appropriate credit or identity protection monitoring services to veterans, spouses and former spouses of veterans, and members of the Armed Forces (including members of the National Guard and Reserve) affected by the theft of personal information from the Department of Veterans Affairs on May 3, 2006.

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As printed