Colorado Bills Address Identify Theft, Document Destruction

From the Internet to credit card theft, from mail fraud to Dumpster diving, identity theft is becoming a serious problem that usually results in a nightmare for victims and rarely has repercussions for those on the stealing end.

With identity-theft cases on the rise in Colorado and across the nation, state lawmakers are taking a close look at new measures to protect residents.

Four bills being reviewed in the House and Senate aim to prevent identity theft and ease the burden on victims.

House Bill 1134 creates the crime of identity theft as a class 6 felony, punishable by one year to 18 months of imprisonment and one year of mandatory parole.

The bill defines identity theft as "obtaining the identifying information of another person for any unlawful purpose."

The bill also creates a process for victims to establish their innocence for crimes committed by the person who stole their identity. It would allow a court to order public information, such as records and criminal databases, be updated to reflect that data is inaccurate because the person's identity was stolen.

And it could be used to correct a person's credit report -- one of the most commonly affected and detrimental aspects of identity theft.

A similar bill also defines identity theft as a crime and outlines a process by which victims can clear their records of crimes they did not commit. House Bill 1122 makes identity theft a class 4 felony, which carries a punishment of two to six years in prison and two years of mandatory parole.

If the crime were committed after a prior conviction for crimes such as fraud or forgery, identity theft would be class 3 felony punishable by four to 12 years in prison and three years of mandatory parole. Both bills are awaiting consideration by the House Appropriations Committee.

A third bill, which passed in the House and is awaiting Senate consideration, tightens the requirements for banks that offer credit or debit accounts by mail.

House Bill 1274 would require banks verify the applicant is the person they offered the account to if an application contains an address different from the address to which they mailed an offer. The bill also allows civil action against a person who uses the personal identifying information of another to commit fraud.

If passed, the bill would become effective July 1.

A bill that seeks to keep Social Security numbers private passed a third reading in the House on March 8, and was introduced into the state Senate on March 9. The bill was assigned to the State Veterans & Military Affairs.

House Bill 1311 prohibits a public entity from issuing a license, permit, pass or certificate that contains the holder's Social Security number, unless it is needed for legitimate reasons.