A.
Pursuant to federal law, the Federal Trade Commission adopted identity
theft rules requiring the creation of certain policies relating to
the use of consumer reports, address discrepancy and the detection,
prevention and mitigation of identity theft;
B.
The Federal Trade Commission regulations, adopted at 16 CFR § 681.2,
require creditors, as defined by 15 U.S.C. § 1681a(4)(5),
to adopt red flag policies to prevent and mitigate identity theft
with respect to covered accounts;
C.
Title 15 U.S.C. § 1681 a(r)(5) cites 15 U.S.C. § 1691a,
which defines a creditor as a person that extends, renews or continues
credit, and defines "credit" in part as the right to purchase property
or services and defer payment therefor;
D.
The Federal Trade Commission regulations include utility companies
in the definition of "creditor";
E.
The City of Rockwood is a creditor with respect to 16 CFR 681.2 by
virtue of providing utility services or by otherwise accepting payment
for municipal services in arrears [NOTE: References to utility accounts
only apply to local governments that actually provide utility services.
While the regulations state that utility accounts are "covered accounts"
and that "creditors" includes utility companies, it is possible that
a City could be a creditor with respect to nonutility covered accounts.
In this event, the preamble to this chapter should be amended accordingly.];
F.
The Federal Trade Commission regulations define "covered account"
in part as an account that a creditor provides for personal, family
or household purposes that is designed to allow multiple payments
or transactions and specifies that a utility account is a covered
account;
G.
The Federal Trade Commission regulations require each creditor to
adopt an identity theft prevention program which will use red flags
to detect, prevent and mitigate identity theft related to information
used in covered accounts;
H.
The City provides water and sewer utility services for which payment
is made after the product is consumed or the service has otherwise
been provided which by virtue of being utility accounts are covered
accounts;
I.
Customer accounts for which payment is made after the product is
consumed or the service has otherwise been provided are covered accounts
by virtue of being for household purposes and allowing for multiple
payments or transactions;
J.
The Federal Trade Commission regulations, adopted as 16 CFR 681.1,
require users of consumer credit reports to develop policies and procedures
relating to address discrepancies between information provided by
a consumer and information provided by a consumer credit company;
K.
The City of Rockwood uses consumer credit reports to establish various
customer accounts; and
L.
The duly elected governing authority of the City of Rockwood is the
Mayor and Council thereof.
