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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
DCS;
credit freeze; consumer reporting
(NOW: DCS; credit freeze; reporting; appropriation)
Purpose
Requires the Department of Child Safety (DCS) to place a security freeze on a child's record or credit report within 30 days after the child is placed in the care of DCS. Appropriates $100,000 and one full-time equivalent position (FTE) from the state General Fund (state GF) in FY 2027 to DCS to assist with security freezes and any credit fraud issues of a dependent child in the care of DCS.
Background
DCS is responsible for protecting the children of the state by: 1) investigating reports of abuse and neglect; 2) assessing, promoting and supporting the safety of a child in a safe and stable family or other appropriate placement in response to allegations of abuse or neglect; 3) working cooperatively with law enforcement regarding reports that include criminal conduct allegations; and 4) without compromising child safety, coordinating services to achieve and maintain permanency on behalf of the child, strengthen the family and provide prevention, intervention and treatment services. When a child is in DCS custody, DCS is responsible for: 1) providing notice to a parent or guardian; 2) holding a preliminary protective hearing, dependency hearings and permanency hearings; 3) identifying and notifying adult relatives and persons with a significant relationship with the child; and 4) finding someone to manage or managing federal benefits for the child (A.R.S. Title 8, Chapter 4).
A consumer reporting agency must place a security freeze on a protected person's record or credit report if the consumer reporting agency receives a request from the protected person's representative for a security freeze and the representative submits the request and provides sufficient proof of identification and authority as outlined by statute. A security freeze that is placed on a protected person's record or credit report remains in effect until the protected person or the protected person's representative submits a request for removal of the security freeze as outlined by statute. A protected person is an individual who is under 16 years of age when a request of a security freeze is made or an incapacitated person or protected person for whom a guardian or conservator has been appointed (A.R.S. § 44-1698.02).
HB 2321 appropriates $100,000 in FY 2027 from the state GF to DCS.
Provisions
1. Requires DCS, within 30 days after a child is adjudicated a dependent child and placed in DCS care, to place a security freeze on the child's record or credit report.
2. Requires a security freeze that is placed on a child's record or credit report to remain in effect until the child reaches 16 years of age.
3. Allows the child to elect to have the security freeze remain or removed when the child reaches 16 years of age.
4. Requires DCS to notify the parent or guardian of a child when a security freeze has been placed on the child's record or credit report and that a security freeze remains on the child's record or credit report when the child leaves the custody of DCS.
5. Requires the notification to include information on the process for removing the security freeze when the child leave the care of DCS.
6. Appropriates $100,000 and one FTE from the state GF in FY 2027 to DCS to assist with:
a) placing and removing security freezes on the record or credit report of dependent children; and
b) any credit fraud issues related to the credit of a dependent child who is in the care of DCS.
7. Declares the Legislature's intent that the one FTE appropriated to DCS is considered ongoing.
8. Adds, to the definition of a protected person, a child who is in the care of DCS.
9. Makes technical and conforming changes.
10. Becomes effective on the general effective date.
House Action
HHS 2/2/26 DP 12-0-0-0
3rd Read 3/9/26 52-0-7-0-1
Prepared by Senate Research
March 18, 2026
AN/TR/ci