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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).
Paid
for by Lathrop for Legislature * 11818 Oakair Plaza * Omaha, NE 68137
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