PETITION OF:

SECTION 1. Section 37E of Chapter 266 of the General Laws, as appearing in the 2000 Official Edition, is hereby amended by adding the following paragraphs:-

(f) A person who learns or reasonably suspects that an identity thief has unlawfully used the person’s personal identifying information, as described in subdivision (b), may contact the local law enforcement agency that has jurisdiction over the person’s actual residence to initiate an investigation.

(g) A local law enforcement officer shall take a police report of and incident of identity theft and provide the complainant with a copy of the report. If the suspected crime originated in a different jurisdiction, the local law enforcement officer shall refer the matter to the law enforcement agency where the suspected crime occurred.

SECTION 2. Section 50 of Chapter 93 of the General Laws, as so appearing, is hereby amended by adding the following paragraphs:-

“Security freeze”, a notice on the consumer report that prohibits a consumer credit reporting agency from releasing information in the consumer’s credit report without the consumer’s express authorization.

“Fraud alert”, a warning to an individual who receives information in a credit report that a person other than the consumer may have used the consumer’s identifying information without the consumer’s consent.

SECTION 3. Chapter 93 of the General Laws, as so appearing, is hereby amended by inserting after section 51 the following sections:-

Section 51A. Change of Address; Notice

A consumer reporting agency shall notify a credit issuer requesting a consumer report for an individual of a discrepancy between the address the consumer reporting agency has on file for the individual and the address the credit issuer has on the application for credit requested on behalf of the individual.

Section 51B. Security Freeze; Security Alert

(a) A consumer may elect to place a security freeze on the consumer’s credit report by making a request in writing to a consumer credit reporting agency.

(b) When a security freeze is in place, a consumer reporting agency shall not release information from a consumer’s credit report to a third party without prior express authorization from the consumer.

(c) A consumer reporting agency shall maintain a security freeze on a consumer’s credit report until the consumer requests in writing that the credit reporting agency remove the security freeze.

(d) A consumer may elect to place a security alert in the consumer’s credit report by making a request in writing or by telephone to a consumer reporting agency.

(e) When a credit issuer or another person requests a full consumer report, credit score, or summary report, a consumer reporting agency shall notify the requester that a security alert exists on the consumer report, by including such information in writing, as part of any requested information.

SECTION 4. Section 56 of Chapter 93 of the General Laws, as so appearing, is hereby amended by adding the following paragraphs:-

You have the right to place a “security alert” in your credit report, which warns anyone who receives information in your credit report that another person may have used your identifying information without your consent and that any credit issuer should verify identity before extending credit under your name.

You have the right to place a “security freeze” on your credit report, which will prohibit a consumer credit reporting agency from releasing any information in your credit report without your express authorization.

SECTION 5. Chapter 93 of the General Laws, as so appearing, is hereby amended by adding the following sections:-

Section 115. Credit Card Issuers; Change of Address; Notice

(a) A credit card issuer that mails an offer or solicitation for a credit card and, in response, receives a completed application for a credit card that lists an address that is different from the address on the offer or solicitation shall verify the change of address.

(b) When a credit card issuer receives a written or oral request for an additional credit card within 10 days after receiving a written or oral request for a change of address, the credit card issuer shall not mail the requested additional credit card to the new address or, alternatively, activate the requested additional credit card, unless the credit card issuer has verified the change of address.

(c) To verify a change of address under subsection (a) and (b), a credit card issuer shall mail a request for confirmation to both the new and former address of a person for whom the change of address was requested.

Section 116. Failure to Comply with the Security Alert; Penalty

A credit issuer, who fails to comply with the preauthorization procedures required under sections 51A and 115, and issues or extends credit in the name of the consumer to a person other than the consumer, shall be liable for a civil penalty of no more than $5,000 for each such violation. The attorney general may file a civil action in the superior court in the name of the commonwealth to recover such penalties.

Section 117. Enforcement by the executive office of consumer affairs

(a) No later than 6 months after the date of enactment of this Act, the director of the executive office of consumer affairs shall develop a standard form and standard procedures for consumers who are victims of identity fraud to use in correcting credit problems relating to identity theft.

(b) The director shall issue educational pamphlets to the public and provide consultation to the attorney general and local law enforcement agencies concerning issues of identity theft.

(c) A consumer reporting agency shall adopt the executive office’s standard form and standard procedure when handling identity fraud complaints of a Massachusetts resident.

Section 118. Monitoring and Evaluation

For 10 years following the date of the Act’s enactment, on a biannual basis the director of the executive office of consumer affairs shall solicit feedback from the general public concerning the provision of this Act, and present a report concerning the Act’s implementation to the legislature.