Illinois Steps Up For Its Consumers

Following California's lead, and citing the Choicepoint case as a watershed event, Illinois lawmakers have made it the second state in the nation to mandate consumer notification in the event that any entity that collects personal data experiences a security breach.

The Personal Information Protection Act, HB 1633 (effective January 2006), is the centerpiece of six pieces of identity theft legislation signed into law on June 16th by Governor Rod Blagojevich.

The new statutes place more stringent regulations on businesses, requiring them to notify "without delay" consumers of possible breaches, mandate the elimination of Social Security numbers from hunting and fishing licenses, increase the penalties against identity thieves and provide victims with the resources necessary to help protect them from future violation.

"These new laws will provide consumers some piece of mind and protection from the fastest growing crime in the country — identity theft," said Blagojevich. According to the Governor, "One of the best ways we can protect consumers is to require companies to notify consumers quickly when their records have been compromised. These laws can help individuals take steps to protect their assets and identities before thieves weak havoc on their credit."

"ID theft is a crime that plagues consumers and their credit records. With all of the recent security breaches, it is critical that consumers are informed when their personal information may be compromised," said Attorney General Lisa Madigan, who worked for passage of the new act. "With the knowledge that sensitive personal information has been breached, consumers can act quickly to stop or minimize damage to their credit history. This legislation gives consumers the power to protect themselves from a crime that can cost a great deal of time, money and peace of mind."

Attorney General Madigan was one of the leaders of the group of thirty nine Attorneys General who demanded that Choicepoint disclose its database breach to all effected consumers in the country.

SB1799 (effective immediately) requires the Illinois Department of Revenue to notify a taxpayer if it suspects that another person has used their Social Security number to register a business or pay taxes and fees.

HB 2696 (effective immediately) prohibits a business from denying a person credit or utility services based solely on their status as an identity theft victim.

HB 2699 (effective immediately) mandates harsher penalties for identity thieves.

HB 2697 (effective immediately) makes it illegal to copy and transmit any devices used to make financial transactions, including credit or debit cards.

SB123 (effective January 2006) requires the Department of Natural Resources to phase out its practice of using Social Security numbers on hunting and fishing licenses. Due to a federal requirement, the department will still keep the Social Security numbers on file, but each applicant for license or renewal will be assigned a Conservation ID number, which will appear on the license itself.

A seventh bill, HB 1058, allowing identity theft victims to place a security freeze on their credit report will be signed into law by the Governor in the near future.