Legislature(2015 - 2016)BARNES 124

04/08/2016 03:15 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 127 INSURER'S USE OF CREDIT HISTORY/SCORES TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit May Be Set> --
+ SB 121 SECURITY FREEZE ON CERTAIN CREDIT REPORTS TELECONFERENCED
Moved CSSB 121(JUD) Out of Committee
-- Public Testimony <Time Limit May Be Set> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
        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.                                                                                                             
                                                                                                                                

Document Name Date/Time Subjects
SB121 ver E.pdf HL&C 4/8/2016 3:15:00 PM
SB 121
SB121 Sponsor Statement.pdf HL&C 4/8/2016 3:15:00 PM
SB 121
SB121 Summary of Changes ver A to ver E.pdf HL&C 4/8/2016 3:15:00 PM
SB 121
SB121 Fiscal Note-LAW-CIV-01-23-16.pdf HL&C 4/8/2016 3:15:00 PM
SB 121
SB121 Supporting Documents-Email- Laura Hughes 5-28-15.pdf HL&C 4/8/2016 3:15:00 PM
SB 121
SB121 Supporting Documents-Legal Memo 10-08-15.pdf HL&C 4/8/2016 3:15:00 PM
SB 121
SB121 Supporting Documents-NCSL Child Identity Theft State Laws.pdf HL&C 4/8/2016 3:15:00 PM
SB 121
SB121 Supporting Documents-NCSL Article Identity Theft Strikes Young.pdf HL&C 4/8/2016 3:15:00 PM
SB 121
SB121 Supporting Documents-Alaska Personal Information Protection Act.pdf HL&C 4/8/2016 3:15:00 PM
SB 121
SB121 Supporting Documents-Child ID Theft Report 2012 AllClear ID Network.pdf HL&C 4/8/2016 3:15:00 PM
SB 121
SB121 Supporting Documents-CyLab Child Identity Theft Report.pdf HL&C 4/8/2016 3:15:00 PM
SB 121
SB127 ver W.PDF HL&C 4/8/2016 3:15:00 PM
SB 127
SB127 Sponsor Statement.pdf HL&C 4/8/2016 3:15:00 PM
SB 127
SB127 Sectional Analysis.pdf HL&C 4/8/2016 3:15:00 PM
SB 127
SB127 Fiscal Note DCCED-DOI-02-05-16.pdf HL&C 4/8/2016 3:15:00 PM
SB 127
SB127 Supporting Documents- State Farm 1-21-16.pdf HL&C 4/8/2016 3:15:00 PM
SB 127
SB127 Supporting Documents-Assorted Emails.pdf HL&C 4/8/2016 3:15:00 PM
SB 127
SB127 Supporting Documents- Credit-Based Insurance Scores Consumer Brochure.pdf HL&C 4/8/2016 3:15:00 PM
SB 127
SB127 Supporting Documents- Div. of Insurance SEN. STA Q&A 2-16-16.PDF HL&C 4/8/2016 3:15:00 PM
SB 127
SB127 Supporting Documents- Fax Tim Maudsley 2-10-16.PDF HL&C 4/8/2016 3:15:00 PM
SB 127
SB127 Supporting Documents- Follow-Up Letter J. Kinsey SL&C 3-1-16.pdf HL&C 4/8/2016 3:15:00 PM
SB 127
SB127 Supporting Documents- Letter Stacey Matteson 2-11-16.pdf HL&C 4/8/2016 3:15:00 PM
SB 127
SB127 Supporting Documents- NAMIC 1-25-16.pdf HL&C 4/8/2016 3:15:00 PM
SB 127
SB127 Supporting Documents- Letter Nancy Boeshart 2-16-16.pdf HL&C 4/8/2016 3:15:00 PM
SB 127
SB127 Supporting Documents-Letter-NAMIC 04-04-16 .PDF HL&C 4/8/2016 3:15:00 PM
SB 127