ID theft bill bound for governor
Omaha World-Herald (Nebraska)
May 19, 2007 Saturday

State lawmakers gave final approval Friday to an identity theft protection bill that would allow consumers to freeze their credit reports to prevent thieves from opening new accounts under their names.

Legislative Bill 674 also would put new requirements on employers to be discreet in using workers' Social Security numbers. They should not be stored in files with unrestricted access, for example, nor should they be used for Internet passwords unless some other authentication also is required.

The identity theft measure passed 44-0, but it does not become law until signed by Gov. Dave Heineman.

The credit report freeze is part of a nationwide effort by the Consumers Union, individual consumer advocates, some AARP chapters and public interest research groups.

If Heineman signs the bill, Nebraska would become the 36th state, in addition to the District of Columbia, to enact such legislation, said Gail Hillebrand, senior attorney for the Consumers Union in San Francisco.

The freeze is intended to prevent new credit accounts from being opened without a consumer's permission.

State Sen. Steve Lathrop of Omaha, the bill's sponsor, called it "one of the toughest pieces of identity theft protection legislation in the country."

He said the workplace is one of the places most vulnerable to identity theft. Some experts believe a majority of identity theft occurs at the workplace, with perhaps of 90 percent perpetrated by another employee, Lathrop said.

Under the bill, a consumer concerned about identity theft would direct, via a certified letter, that the three main credit reporting agencies not issue credit reports to inquiring creditors -- unless the consumer asks that the freeze be lifted, temporarily or permanently.

It would cost $15 per credit bureau to institute the freeze, which would automatically expire after seven years.

If the consumer wanted more credit, the bureaus would have to lift the freeze within three days of the consumer's request.

Jaimee Napp of Omaha, an identity theft victim who became a consumer advocate, said the freeze is a step forward for consumers.

"It gives consumers some piece of control over their credit," she said.

Napp also praised provisions governing employers' use of Social Security numbers. She had been victimized by a woman who obtained her Social Security number at work.

Several other bills were given final passage by the Legislature. They included a measure stiffening penalties for repeat drunken drivers who refuse to take a sobriety test (LB 578) and a measure that would increase state road construction funding by $9 million a year (LB 305).


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