As identity theft reports climb, legislative response is hung up on the Hill
JULY 27, 2006 -- With formal sessions quickly coming to an end over the next four days, Beacon Hill lawmakers have yet to act on legislation aimed at denting one of the fastest-growing crimes in the country: identity theft.
“Every week, somewhere in the country, you read about a laptop lost, a computer tape left unguarded somewhere with Social Security numbers, or information being left in a third-party contractor’s hands,” said Rep. William Straus (D-Mattapoisett). “Literally, every week.”
Favorably reported out of the Joint Consumer Protection Committee in March, the identity theft prevention bill, a redraft of six others bill filled during the beginning of the legislative session in 2005, is sitting in the House Ways and Means Committee.
“My feeling is that it’s a bill that should come to the House floor,” Straus said, adding that most House members want to have a chance to take the bill up and adopt it.
Under the bill, consumers would be able to freeze their credit files at no charge and credit reporting agencies would be required to seek authorization from consumers before releasing their personal information, as well as notifying them within ten days if a breach occurs.
The bill (H 4775) also allows companies to be sued for negligently releasing personal information, raised to a civil offense. Penalties would be increased for identity thieves and specific requirements set out for businesses and government agencies regarding security breach notification and the destruction of personal information.
Previously filed bills have failed to gain any traction.
In another push to promote the bill, Straus and bill co-sponsor Rep. Michael Costello (D-Newburyport) on Tuesday sent a letter co-signed by 58 other state representatives to House Speaker Salvatore DiMasi (D-Boston), asking him to help advance the bill.
“I think it’s just sitting together with a number of other bills,” said John Scibak (D-South Hadley), a co-sponsor of the bill. “We just did the streamline permitting bill. I’m still hoping that before the session ends, we’ll get around to it.”
Calls to Speaker DiMasi’s office were referred to the House Ways and Means Committee. Scibak and Straus said they have not recently spoken to DiMasi about the bill.
Rep. Robert DeLeo (D-Winthrop), Ways and Means chair, is working on the legislation with other House lawmakers and there is no scheduled release date for the bill, since it’s still being analyzed, according to Ways and Means spokesman Jim Eisenberg.
“I can tell you Chairman DeLeo absolutely supports crafting comprehensive legislation to prevent identity theft and protect consumers and is continuing to work with legislators who support that goal,” Eisenberg said.
Scibak said some lawmakers may be uncomfortable with several of the provisions, and added that if the bill can’t get out of committee, the House may look at simply passing the credit freeze requirement.
“We’re exploring a number of different avenues,” and passing only the credit freeze requirement is one of them, Eisenberg said.
Progressive advocacy group MassPIRG has also been lobbying for the bill, noting that 36 other states have passed similar identity theft prevention laws.
“We’ve really lagged behind,” said MassPIRG’s Eric Bourassa, who attributed resistance to the bill to the banking and credit industries because they don’t want the cost and embarrassment associated with losing data. “It’s unfortunate that our residents are going to be more vulnerable to identity theft.”
“Veterans, indeed regular citizens across the Commonwealth are being victimized at an accelerated rate every day,” said Sen. Jarrett Barrios (D-Cambridge) in between votes today outside the Senate chamber.
Barrios and other lawmakers held a press conference in June when the U.S. Department of Veteran Affairs alerted 2.6 million veterans – nearly 500,000 in Massachusetts – and some on active duty that their personal information may have been lost when an employee took home a laptop, which wasn’t recovered until eight weeks later.
Supporters point to an incident in the last week, where several Boston police officers were alleged to have stolen information obtained through traffic stops to open up credit cards.
“The only way for people not to be a victim of the crime is to adopt a security freeze,” Straus said.
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