Legislature(2015 - 2016)BARNES 124
04/08/2016 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB121 | |
| SB127 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 127 | TELECONFERENCED | |
| + | SB 121 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SB 121-SECURITY FREEZE ON CERTAIN CREDIT REPORTS
3:22:54 PM
CHAIR OLSON announced that the first order of business would be
CS FOR SENATE BILL NO. 121(JUD), "An Act relating to a security
freeze on the consumer credit report of a minor, incapacitated
person, or protected person."
3:23:07 PM
EDRA MORLEDGE, staff, Senator Kevin Meyer, Alaska State
Legislature, advised that SB 121 is a consumer protection bill
allowing a parent, legal guardian, or conservator to place a
security freeze on a dependent's credit file. If a credit
report does not exist because the child is a dependent and has
not established credit of their own, the credit bureaus would be
directed to establish a credit file for the purpose of placing a
freeze on the file. She reminded the committee that identity
theft is a growing concern which local, state, and federal
governments are taking measures to combat. Following testimony
heard in the Senate Judiciary Standing Committee, the bill was
expanded from coverage for minor children to include
incapacitated adults and other protected individuals. Often,
she explained, those individuals have not established credit in
their own names and they may not be able to manage their own
finances or to establish credit. This legislation allows those
tasked with managing another person's finances to place a
security freeze on their credit file.
3:25:06 PM
CHAIR OLSON opened public testimony.
3:25:18 PM
LAURA HUGHES stated support for SB 121, and concurred with Ms.
Morledge's testimony. Ms. Hughes and her husband used a credit
freeze and were looking to do the same for their daughters, but
found that Alaska does not have a law to do so. She contacted
Senator Meyer's office and related that she hopes to see the
bill become law.
REPRESENTATIVE LEDOUX asked whether adults can obtain a freeze
on their credit files.
MS. MORLEDGE answered yes. Currently, the Personal Information
Protection Act (PIPA), contains procedures for individuals to
contact credit bureaus and place a freeze on their own credit
file. In further response to Representative LeDoux, she
explained that a credit freeze means the credit bureau cannot
share your credit score or your credit history with another
company that is inquiring for the purposes of establishing
credit with the inquiring company.
REPRESENTATIVE LEDOUX asked whether a person would put a freeze
on their credit file if they thought someone was trying to steal
their identity. Otherwise, she commented, how would a person
ever obtain credit?
MS. MORLEDGE said if one fears another person has access to
their social security number or other personal information, one
could place a freeze for the purpose of knowing their credit
file is secure and cannot be shared with other companies. There
are also provisions in PIPA which allow a person to unfreeze the
credit file temporarily or permanently, she said.
REPRESENTATIVE LEDOUX surmised that under this bill if the
parents or guardian froze the child's account they would be able
to unfreeze it.
MS. MORLEDGE agreed, and advised the parent could unfreeze it,
or the Alaskan child, who at age 16 years can apply for
financial aid, can unfreeze their credit.
3:29:11 PM
REPRESENTATIVE HUGHES observed that if a minor's parents froze
their child's account, after turning 18 years-of-age he/she
could unfreeze their credit file.
MS. MORLEDGE said correct.
REPRESENTATIVE HUGHES pointed out that young people are
purchasing more products than in prior years, and asked whether
that is the reason this bill is necessary.
MS. MORLEDGE explained how research shows that people have
become aware of increasing identity theft of children. The
national rate is approximately 11 percent for children who have
had their social security numbers used without their consent or
their parents' knowledge. Further, children are about 35 times
more likely than adults to have their identity stolen because
[their records] are a "blank slate." Approximately 16 to 20
states have pending legislation allowing a credit freeze by
parents because people are beginning to recognize the problem.
REPRESENTATIVE HUGHES commented on the worthiness of the
proposed legislation.
CHAIR OLSON, after ascertaining no one wished to testify, closed
public testimony.
3:32:20 PM
REPRESENTATIVE HUGHES moved to report CSSB 121(JUD), Version 29-
LS1129\E, out of committee with individual recommendations and
the accompanying fiscal notes. There being no objection, CSSB
121(JUD) was reported out of the House Labor and Commerce
Standing Committee.