SB 121-SECURITY FREEZE ON CERTAIN CREDIT REPORTS
2:14:22 PM
CHAIR LEDOUX announced that the next order of business would be
CS FOR SENATE BILL NO. 121(JUD) am H, "An Act relating to a
security freeze on the consumer credit report of a minor,
incapacitated person, or protected person."
2:15:05 PM
SENATOR KEVIN MEYER, Alaska State Legislature, explained that SB
121 is a consumer protection bill addressing protection of
children and other vulnerable individuals before they become
victims of identity theft. He remarked that his staff, Ms.
Morledge will describe the details of the bill.
2:16:22 PM
EDRA MORLEDGE, Staff, Senator Kevin Meyer, Alaska State
Legislature, advised that the issue was brought to Senator
Meyer's attention when a constituent advised that she and her
husband placed security freezes on their credit shortly after
taking out a mortgage and they looked into doing the same for
their children to pre-empt any sort of criminal activity. They
found that Alaska does not have a specific law allowing that,
although, some credit agencies do give parents leeway, there is
not a specific statute. She explained that this bill is
designed to prevent these criminal acts or identity theft acts
by doing two things: specifically allow a parent, guardian, or
conservator to place a security freeze on a minor child,
dependent, or a protected individual's credit in order to
prevent fraudulent activity; and if no credit report exists, the
credit bureau is directed to create a credit file in order to
place the freeze. She pointed out that children, in general, do
not begin to establish credit until they are 18 years, or at the
time they apply for financial aid, which can be 16 years of age
in this state, and several years may pass by before financial
fraud is detected. The same is true for vulnerable adults who
may not be able to manage their own personal finances;
therefore, possibly not establishing credit in their own name
and many years may pass by before the fraud it detected.
CHAIR LEDOUX listed the witnesses available to answer questions
and opened public testimony.
2:19:06 PM
LAURA HUGHES said she is in support of this bill and that she is
excited to see how far it has come through the Senate and House
of Representatives. She advised that she and her husband have
two young girls and realized the girls are more likely to have
their identity stolen because they are essentially a clean
slate. She agreed that oftentimes it is unknown that the
children's identities have been stolen until they are 18 years
old, and this is a pre-emptive move to help protect them.
CHAIR LEDOUX closed public testimony, and advised she is holding
the SB 121.
[SB 121 was held over.]