Compliance Alert

A Texas State senator has proposed an identity theft prevention and punishment bill that has gained the support of the state’s attorney general.

Texas State Sen. Juan Hinojosa, D-McAllen, has proposed legislation that aims to protect residents of Texas against identity theft. Senate Bill 122, called the Identity Theft Enforcement and Protection Act, also is designed to make it easier for Texans to prove they were victims of identity theft.

The bill also contains language that should encourage the shredding of documents kept on file by businesses that contain an individual’s name along with identifying information, such as a Social Security number, date of birth or a fingerprint.

Businesses or agencies possessing such information are mandated to "implement and maintain reasonable procedures" to prevent the unlawful use of the information throughout the "regular course of business," which would presumably cover disposal.

It is unclear whether businesses found negligent in protecting information are subject to the penalties spelled out in SB 122 for those found guilty of engaging in identity theft.

"I thank Sen. Hinojosa for his leadership in empowering consumers and law enforcement to more effectively fight perpetrators of identity theft," says Texas Attorney General Greg Abbot.

"Identity thieves not only steal from consumers and from businesses: Families are also losing credit worthiness and valuable time trying to fix the damage done by these criminals," Hinojosa says. "Its devastating effects can last for years, and my objective is for this measure to keep families from losing additional money and time and to enlist the atorney general in making the perpetrators face justice."

SB 122 would authorize the state’s attorney general to take legal action, including seeking restitution for victims and fines ranging from $2,000 to $50,000 per violation, against those who engage in identity theft. Under the proposed law, penalties could also be applied against businesses that mishandle consumers’ personal information and cause it to fall into the hands of identity thieves.