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--- version:Introduced Version+++ version:(document, no version)@@ -1,226 +1,275 @@- - i ---REFERENCE TITLE: DCS; credit freeze; consumer reporting--State of Arizona-House of Representatives-Fifty-seventh Legislature-Second Regular Session-2026--HB 2321--Introduced by-Representatives Gress: Carter N, Diaz, Fink, Hendrix, Livingston;-Senators Angius, Werner--AN ACT--AMENDING TITLE 8, CHAPTER 4, ARTICLE 4, ARIZONA REVISED STATUTES, BY-ADDING SECTION 8-530.10; AMENDING SECTION 44-1698.02, ARIZONA REVISED-STATUTES; RELATING TO CHILD WELFARE.--(TEXT OF BILL BEGINS ON NEXT PAGE)--HB 2321-- - 1 --Be it enacted by the Legislature of the State of Arizona: 1+Amendment explanation prepared by Anna Nguyen+06/10/2026++ Bill Number: H.B. 2321+ Finchem Floor Amendment+ Reference to: House engrossed bill+ Amendment drafted by: Leg. Council++FLOOR AMENDMENT EXPLANATION++• Removes the $100,000 appropriation from the state General Fund to the Department of Child+Safety in FY 2027 for purposes relating to credit freezes for dependent children.++Fifty-seventh Legislature Finchem+Second Regular Session H.B. 2321++FINCHEM FLOOR AMENDMENT+SENATE AMENDMENTS TO H.B. 2321+(Reference to House engrossed bill)++The bill as proposed to be amended is reprinted as follows: 1Section 1. Title 8, chapter 4, article 4, Arizona Revised Statutes, 2is amended by adding section 8-530.10, to read: 3-8-530.10. Security freeze; credit reporting agencies;+8-530.10. Security freeze; credit report; dependent children 4+in department care; parental notification; 5+definitions 6+A. WITHIN THIRTY DAYS AFTER A CHILD IS ADJUDICATED A DEPENDENT 7+CHILD AND PLACED IN THE CARE OF THE DEPARTMENT, THE DEPARTMENT SHALL PLACE 8+A SECURITY FREEZE ON THE CHILD'S RECORD OR CREDIT REPORT PURSUANT TO 9+SECTION 44-1698.02. 10+B. A SECURITY FREEZE THAT IS PLACED ON A CHILD'S RECORD OR CREDIT 11+REPORT PURSUANT TO SUBSECTION A OF THIS SECTION SHALL REMAIN IN EFFECT 12+UNTIL THE CHILD REACHES SIXTEEN YEARS OF AGE. WHEN A CHILD REACHES 13+SIXTEEN YEARS OF AGE, THE CHILD MAY ELECT TO HAVE THE SECURITY FREEZE 14+REMAIN OR TO HAVE THE SECURITY FREEZE REMOVED. 15+C. THE DEPARTMENT SHALL NOTIFY THE PARENT OR GUARDIAN OF A CHILD 16+WHEN A SECURITY FREEZE HAS BEEN PLACED ON THE CHILD'S RECORD OR CREDIT 17+REPORT AND SHALL NOTIFY THE CHILD'S PARENT OR GUARDIAN THAT A SECURITY 18+FREEZE REMAINS ON THE CHILD'S RECORD OR CREDIT REPORT WHEN THE CHILD 19+LEAVES THE CUSTODY OF THE DEPARTMENT. THE NOTIFICATION SHALL INCLUDE 20+INFORMATION ON THE PROCESS FOR REMOVING THE SECURITY FREEZE WHEN THE CHILD 21+LEAVES THE CARE OF THE DEPARTMENT. 22+D. FOR THE PURPOSES OF THIS SECTION: 23+1. "RECORD" HAS THE SAME MEANING PRESCRIBED IN SECTION 44-1698.02. 24+2. "SECURITY FREEZE" HAS THE SAME MEANING PRESCRIBED IN SECTION 25+44-1698.02. 26+Amendment instruction key:+[GREEN UNDERLINING IN BRACKETS] indicates text added to statute or+previously enacted session law.+[Green underlining in brackets] indicates text added to new session law+or text restoring existing law.+[GREEN STRIKEOUT IN BRACKETS] indicates new text removed from statute+or previously enacted session law.+[Green strikeout in brackets] indicates text removed from existing statute,+previously enacted session law or new session law.+<<Green carets>> indicate a section added to the bill.+<<Green strikeout in carets>> indicates a section removed from the bill.++Senate Amendments to H.B. 2321++-2-+Sec. 2. Section 44-1698.02, Arizona Revised Statutes, is amended to 1+read: 2+44-1698.02. Protected persons; security freezes; credit+3+reports; fee prohibited; definitions 4+A. A consumer reporting agency shall place a security freeze on a 5+protected person's record or credit report if both of the following apply: 6+1. The consumer reporting agency receives a request from the 7+protected person's representative for the placement of the security 8+freeze. 9+2. The protected person's representative does all of the following: 10+(a) Submits the request to the consumer reporting agency at the 11+address or other point of contact and in the manner specified by the 12+consumer reporting agency. 13+(b) Provides to the consumer reporting agency sufficient proof of 14+identification of the protected person and the representative. 15+(c) Provides to the consumer reporting agency sufficient proof of 16+authority to act on behalf of the protected person. 17+B. If a consumer reporting agency does not have a file pertaining 18+to a protected person when the consumer reporting agency receives a 19+request pursuant to subsection A, paragraph 1 of this section, the 20+consumer reporting agency shall create a record for the protected person. 21+C. Within thirty days after receiving a request pursuant to this 22+section, a consumer reporting agency shall place a security freeze on the 23+protected person's record or credit report. 24+D. Unless a security freeze is removed pursuant to subsection F or 25+I of this section, a consumer reporting agency may not release the 26+protected person's credit report, any information derived from the 27+protected person's credit report or any record created for the protected 28+person. 29+E. A security freeze that is placed on a protected person's record 30+or credit report under this section remains in effect until either: 31+1. The protected person or the protected person's representative 32+requests that the consumer reporting agency remove the security freeze 33+pursuant to subsection F of this section. 34+2. The security freeze is removed pursuant to subsection I of this 35+section. 36+F. To remove a security freeze for a protected person, the 37+protected person or the protected person's representative shall submit a 38+request for the removal of the security freeze to the consumer reporting 39+agency at the address or other point of contact and in the manner 40+specified by the consumer reporting agency. In addition: 41+1. If the protected person requested REQUESTS the removal of the 42+security freeze, the protected person shall provide to the consumer 43+reporting agency either of the following: 44++Senate Amendments to H.B. 2321++-3-+(a) Proof that the protected person's representative no longer has 1+sufficient proof of authority to act on behalf of the protected person. 2+(b) Sufficient proof of identification of the protected person. 3+2. If the protected person's representative requested REQUESTS the4-children in department care; definitions 5-A. WITHIN THIRTY DAYS AFTER A CHILD ENTERS THE CARE OF THE 6-DEPARTMENT, THE CHILD'S CASEWORKER SHALL PLACE A SECURITY FREEZE ON THE 7-CHILD'S RECORD OR CREDIT REPORT PURSUANT TO SECTION 44-1698.02. 8-B. FOR THE PURPOSES OF THIS SECTION: 9-1. "RECORD" HAS THE SAME MEANING PRESCRIBED IN SECTION 44-1698.02. 10-2. "SECURITY FREEZE" HAS THE SAME MEANING PRESCRIBED IN SECTION 11-44-1698.02. 12-Sec. 2. Section 44-1698.02, Arizona Revised Statutes, is amended to 13-read: 14-44-1698.02. Protected persons; security freezes; credit 15-reports; fee prohibited; definitions 16-A. A consumer reporting agency shall place a security freeze on a 17-protected person's record or credit report if both of the following apply: 18-1. The consumer reporting agency receives a request from the 19-protected person's representative for the placement of the security 20-freeze. 21-2. The protected person's representative does all of the following: 22-(a) Submits the request to the consumer reporting agency at the 23-address or other point of contact and in the manner specified by the 24-consumer reporting agency. 25-(b) Provides to the consumer reporting agency sufficient proof of 26-identification of the protected person and the representative. 27-(c) Provides to the consumer reporting agency sufficient proof of 28-authority to act on behalf of the protected person. 29-B. If a consumer reporting agency does not have a file pertaining 30-to a protected person when the consumer reporting agency receives a 31-request pursuant to subsection A, paragraph 1 of this section, the 32-consumer reporting agency shall create a record for the protected person. 33-C. Within thirty days after receiving a request pursuant to this 34-section, a consumer reporting agency shall place a security freeze on the 35-protected person's record or credit report. 36-D. Unless a security freeze is removed pursuant to subsection F or 37-I of this section, a consumer reporting agency may not release the 38-protected person's credit report, any information derived from the 39-protected person's credit report or any record created for the protected 40-person. 41-E. A security freeze that is placed on a protected person's record 42-or credit report under this section remains in effect until either: 43-HB 2321-- - 2 --1. The protected person or the protected person's representative 1-requests that the consumer reporting agency remove the security freeze 2-pursuant to subsection F of this section. 3-2. The security freeze is removed pursuant to subsection I of this 4-section. 5-F. To remove a security freeze for a protected person, the 6-protected person or the protected person's representative shall submit a 7-request for the removal of the security freeze to the consumer reporting 8-agency at the address or other point of contact and in the manner 9-specified by the consumer reporting agency. In addition: 10-1. If the protected person requested REQUESTS the removal of the-11-security freeze, the protected person shall provide to the consumer 12-reporting agency either of the following: 13-(a) Proof that the protected person's representative no longer has 14-sufficient proof of authority to act on behalf of the protected person. 15-(b) Sufficient proof of identification of the protected person. 16-2. If the protected person's representative requested REQUESTS the 17-removal of the security freeze on behalf of the protected person, the 18-protected person's representative shall provide to the consumer reporting 19-agency both of the following: 20-(a) Sufficient proof of identification of the protected person and 21-the representative. 22-(b) Sufficient proof of authority to act on behalf of the protected 23-person. 24-G. Within thirty days after receiving a request to remove a 25-security freeze placed pursuant to subsection A of this section, the 26-consumer reporting agency shall remove the security freeze for the 27-protected person. 28-H. A consumer reporting agency may not charge a fee for each 29-placement or removal of a security freeze on a protected person's record 30-or credit report. 31-I. A consumer reporting agency may remove a security freeze for a 32-protected person or may delete a protected person's record if the security 33-freeze was placed or the record was created based on a material 34-misrepresentation of fact by the protected person or the protected 35-person's representative. 36-J. An act or practice in violation of this section is an unlawful 37-practice under section 44-1522 and is subject to enforcement through a 38-private action and by the attorney general. The attorney general may 39-investigate and take appropriate action as prescribed by chapter 10, 40-article 7 of this title. The remedies provided in this section are not 41-intended to be the exclusive remedies available to a protected person. 42-HB 2321-- - 3 --K. This section does not apply to the use of a protected person's 1-credit report or record by any of the following: 2-1. A person administering a credit file monitoring subscription 3-service to which either: 4-(a) The protected person has subscribed. 5-(b) The protected person's representative has subscribed on behalf 6-of the protected person. 7-2. A person providing the protected person or the protected 8-person's representative with a copy of the protected person's credit 9-report on the request of the protected person or the protected person's 10-representative. 11-3. A check services or fraud prevention services company that 12-issues either: 13-(a) Reports on incidents of fraud. 14-(b) Authorizations for the purpose of approving or processing 15-negotiable instruments, electronic funds transfers or similar payment 16-methods. 17-4. A deposit account information service company that issues 18-reports relating to account closures due to fraud, substantial 19+removal of the security freeze on behalf of the protected person, the 5+protected person's representative shall provide to the consumer reporting 6+agency both of the following: 7+(a) Sufficient proof of identification of the protected person and 8+the representative. 9+(b) Sufficient proof of authority to act on behalf of the protected 10+person. 11+G. Within thirty days after receiving a request to remove a 12+security freeze placed pursuant to subsection A of this section, the 13+consumer reporting agency shall remove the security freeze for the 14+protected person. 15+H. A consumer reporting agency may not charge a fee for each 16+placement or removal of a security freeze on a protected person's record 17+or credit report. 18+I. A consumer reporting agency may remove a security freeze for a 19+protected person or may delete a protected person's record if the security 20+freeze was placed or the record was created based on a material 21+misrepresentation of fact by the protected person or the protected 22+person's representative. 23+J. An act or practice in violation of this section is an unlawful 24+practice under section 44-1522 and is subject to enforcement through a 25+private action and by the attorney general. The attorney general may 26+investigate and take appropriate action as prescribed by chapter 10, 27+article 7 of this title. The remedies provided in this section are not 28+intended to be the exclusive remedies available to a protected person. 29+K. This section does not apply to the use of a protected person's 30+credit report or record by any of the following: 31+1. A person administering a credit file monitoring subscription 32+service to which either: 33+(a) The protected person has subscribed. 34+(b) The protected person's representative has subscribed on behalf 35+of the protected person. 36+2. A person providing the protected person or the protected 37+person's representative with a copy of the protected person's credit 38+report on the request of the protected person or the protected person's 39+representative. 40+3. A check services or fraud prevention services company that 41+issues either: 42+(a) Reports on incidents of fraud. 43++Senate Amendments to H.B. 2321++-4-+(b) Authorizations for the purpose of approving or processing 1+negotiable instruments, electronic funds transfers or similar payment 2+methods. 3+4. A deposit account information service company that issues 4+reports relating to account closures due to fraud, substantial 5overdrafts, OR automated teller machine abuse or similar negative-20-information about a protected person to inquiring banks or other financial 21-institutions for use only in reviewing a protected person's request for a 22-deposit account at the inquiring bank or financial institution. 23-5. An insurance company for the purpose of conducting its ordinary 24-business. 25-6. A consumer reporting agency that both: 26-(a) Acts only to resell credit information by assembling and 27-merging information contained in a database of another consumer reporting 28-agency. 29-(b) Does not maintain a permanent database of credit information 30-from which new credit reports are produced. 31-7. A consumer reporting agency's database or file that consists of 32-information concerning and used for one or more of the following, but not 33-for credit granting, purposes: 34-(a) Criminal record information. 35-(b) Fraud prevention or detection. 36-(c) Personal loss history information. 37-(d) Employment, tenant or individual background screening. 38-8. A governmental entity when carrying out its duties. 39-9. A person, a subsidiary, affiliate, agent or subcontractor of 40-that person, an assignee of a financial obligation owed by the protected 41-person to that person or a prospective assignee of a financial obligation 42-owed by the protected person to that person in conjunction with the 43-proposed purchase of the financial obligation with which the protected 44-person has or had before assignment an account or contract, including a 45-HB 2321-- - 4 --demand deposit account, or to whom the protected person issued a 1-negotiable instrument, for the purposes of reviewing the account or 2-collecting the financial obligation owed for the account, contract or 3-negotiable instrument. For the purposes of this paragraph, "reviewing the 4-account" includes activities that are related to account maintenance, 5-monitoring, credit line increases and account upgrades and enhancements. 6-L. For the purposes of this section: 7-1. "Protected person" means ANY OF THE FOLLOWING: 8-(a) An individual who is under sixteen years of age at the time a 9-request for the placement of a security freeze is made. or who is-10-(b) An incapacitated person or a protected person for whom a 11-guardian or conservator has been appointed. 12-(c) A CHILD WHO IS IN THE CARE OF THE DEPARTMENT OF CHILD SAFETY. 13-2. "Record" means a compilation of information to which all of the 14-following apply: 15-(a) The record identifies a protected person. 16-(b) The record is created by a consumer reporting agency solely for 17-the purpose of complying with this section. 18-(c) The record is not created or used to consider the protected 19-person's creditworthiness, credit standing, credit capacity, character, 20-general reputation, personal characteristics or mode of living. 21-3. "Representative" means a person who provides to a consumer 22-reporting agency sufficient proof of authority to act on behalf of a 23-protected person. 24-4. "Security freeze" means: 25-(a) If a consumer reporting agency does not have a file pertaining 26-to a protected person, a restriction that is placed on the protected 27-person's record and that prohibits the consumer reporting agency from 28-releasing the protected person's record. 29-(b) If a consumer reporting agency has a file pertaining to the 30-protected person, a restriction that is placed on the protected person's 31-credit report and that prohibits the consumer reporting agency from 32-releasing the protected person's credit report or any information derived 33-from the protected person's credit report. 34-5. "Sufficient proof of authority" means documentation that shows a 35-representative has authority to act on behalf of a protected person and 36-includes: 37-(a) A court order. 38-(b) A lawfully executed and valid power of attorney. 39-(c) A written, notarized statement signed by a representative that 40-expressly describes the authority of the representative to act on behalf 41-of a protected person. 42-6. "Sufficient proof of identification" means information or 43-documentation that identifies a protected person or a representative of a 44-protected person and includes: 45-HB 2321-- - 5 --(a) A social security number or a social security card issued by 1-the social security administration. 2-(b) A certified or official copy of a birth certificate issued by 3-the department of health services. 4-(c) A driver license or a nonoperating identification license 5-issued by the department of transportation pursuant to title 28, chapter 8 6+6+information about a protected person to inquiring banks or other financial 7+institutions for use only in reviewing a protected person's request for a 8+deposit account at the inquiring bank or financial institution. 9+5. An insurance company for the purpose of conducting its ordinary 10+business. 11+6. A consumer reporting agency that both: 12+(a) Acts only to resell credit information by assembling and 13+merging information contained in a database of another consumer reporting 14+agency. 15+(b) Does not maintain a permanent database of credit information 16+from which new credit reports are produced. 17+7. A consumer reporting agency's database or file that consists of 18+information concerning and used for one or more of the following, but not 19+for credit granting, purposes: 20+(a) Criminal record information. 21+(b) Fraud prevention or detection. 22+(c) Personal loss history information. 23+(d) Employment, tenant or individual background screening. 24+8. A governmental entity when carrying out its duties. 25+9. A person, a subsidiary, affiliate, agent or subcontractor of 26+that person, an assignee of a financial obligation owed by the protected 27+person to that person or a prospective assignee of a financial obligation 28+owed by the protected person to that person in conjunction with the 29+proposed purchase of the financial obligation with which the protected 30+person has or had before assignment an account or contract, including a 31+demand deposit account, or to whom the protected person issued a 32+negotiable instrument, for the purposes of reviewing the account or 33+collecting the financial obligation owed for the account, contract or 34+negotiable instrument. For the purposes of this paragraph, "reviewing the 35+account" includes activities that are related to account maintenance, 36+monitoring, credit line increases and account upgrades and enhancements. 37+L. For the purposes of this section: 38+1. "Protected person" means ANY OF THE FOLLOWING: 39+(a) An individual who is under sixteen years of age at the time a 40+request for the placement of a security freeze is made. or who is 41+(b) An incapacitated person or a protected person for whom a 42+guardian or conservator has been appointed. 43+(c) A CHILD WHO IS IN THE CARE OF THE DEPARTMENT OF CHILD SAFETY. 44++Senate Amendments to H.B. 2321++-5-+2. "Record" means a compilation of information to which all of the 1+following apply: 2+(a) The record identifies a protected person. 3+(b) The record is created by a consumer reporting agency solely for 4+the purpose of complying with this section. 5+(c) The record is not created or used to consider the protected 6+person's creditworthiness, credit standing, credit capacity, character, 7+general reputation, personal characteristics or mode of living. 8+3. "Representative" means a person who provides to a consumer 9+reporting agency sufficient proof of authority to act on behalf of a 10+protected person. 11+4. "Security freeze" means: 12+(a) If a consumer reporting agency does not have a file pertaining 13+to a protected person, a restriction that is placed on the protected 14+person's record and that prohibits the consumer reporting agency from 15+releasing the protected person's record. 16+(b) If a consumer reporting agency has a file pertaining to the 17+protected person, a restriction that is placed on the protected person's 18+credit report and that prohibits the consumer reporting agency from 19+releasing the protected person's credit report or any information derived 20+from the protected person's credit report. 21+5. "Sufficient proof of authority" means documentation that shows a 22+representative has authority to act on behalf of a protected person and 23+includes: 24+(a) A court order. 25+(b) A lawfully executed and valid power of attorney. 26+(c) A written, notarized statement signed by a representative that 27+expressly describes the authority of the representative to act on behalf 28+of a protected person. 29+6. "Sufficient proof of identification" means information or 30+documentation that identifies a protected person or a representative of a 31+protected person and includes: 32+(a) A social security number or a social security card issued by 33+the social security administration. 34+(b) A certified or official copy of a birth certificate issued by 35+the department of health services. 36+(c) A driver license or a nonoperating identification license 37+issued by the department of transportation pursuant to title 28, chapter 8 38or any other government issued GOVERNMENT-ISSUED identification.-7+39+<<Sec. 3. Appropriations; department of child safety; 40+dependent children security freeze; intent 41+A. The sum of $100,000 and one FTE position are appropriated from 42+the state general fund in fiscal year 2026-2027 to the department of child 43+safety to assist with placing and removing security freezes on the record 44+or credit report of dependent children pursuant to section 8-530.10, 45++Senate Amendments to H.B. 2321++-6-+Arizona Revised Statutes, as added by this act, and to assist with any+1+credit fraud issues related to the credit of a dependent child who is in 2+the care of the department of child safety. 3+B. The legislature intends that the one FTE position that is 4+appropriated pursuant to subsection A of this section be considered 5+ongoing in future years.>> 6++Enroll and engross to conform 7+Amend title to conform 8++MARK FINCHEM++2321FloorFINCHEM.docx+06/09/2026+12:29 PM+C: LAT+130JSNTUA
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