At issue, 2007 August

Volume 2, Number 2

State of Georgia

August 2007

Identity theft and credit freezing
By: Rachel L. Moore, Senior Policy Analyst

At-A-Glance: Georgia's water management plan

I

n recent years, identity theft has become a major issue of concern among American consumers. A November 2006 Harris Interactive survey commissioned by the National Crime Prevention Council found that identity theft topped the list of crimes that seriously con-

cern the public, outranking crimes such as burglary and robbery. Last year,

the Federal Trade Commission's (FTC) online database, the Consumer Sen-

By: Angie Fiese, Senior Policy Analyst
"As Georgia continues to grow and prosper, it is incumbent upon us to

tinel, received 246,035 complaints of identity theft (including over 8,000 develop a comprehensive

complaints from Georgia). However,

the FTC estimates the number statewide plan that ad-

of actual incidences to be year. Per-

as high as nine million per dresses our long-term

haps more worrisome than water needs and conser-

the actual likelihood that a person will fall prey to iden-

vation efforts. Water

tity theft is the significant nourishes our environ-

personal and financial dam- ment and is a major

age this crime can impart on its victims. Identity theft often goes undetected for long periods

driving force of our state's economy." -- Governor Sonny Perdue

of time, and when it is discovered, some victims are compelled to devote much time and money to clear their names.

On May 13, 2004, Governor Perdue signed House Bill 237, the Comprehensive StateWide Water Management

Planning Act (Act), authoriz-

In light of this anxiety, states and the federal government have acted to pro- ing the Georgia Environ-

vide consumers with more tools to combat identity theft. In 2003, Congress mental Protection Division

amended the Fair Credit Reporting Act to allow consumers to place one of (EPD) to prepare a Compre-

three types of fraud alerts on their credit reports with the three major con- hensive State-Wide Water

sumer reporting agencies, Equifax, Experian, and TransUnion (See 15

Management Plan (Plan). As

U.S.C. 1681c-1 [2007]). The first type, an initial fraud alert, remains on a required by the Act, EPD pre-

credit report for 90 days and may be placed by any consumer who believes sented a draft of the Plan on

he or she has been or might become an identity theft or fraud victim. The June 28, 2007 to the Water

second type, an extended fraud alert, will last for seven years and the con- Council, a coordinating com-

sumer is required to file a report of identity theft with law enforcement. The mittee created by the Act.

third type, an active military duty alert, is available to service members

(Continued on Page 2)

(Continued on Page 3)

Page One

At Issue

Senate Research Office

Identity theft and credit freezing (Continued from Page 1)

called to active duty. It stays in place for 12 months. Whatever the type, consumer reporting agencies are required to include the fraud alert with any credit score generated from a consumer's file. Potential creditors are then required to take reasonable steps to verify a consumer's identity.
Meanwhile, state lawmakers have also sought to respond to their constituent's concerns over identity theft. Measures allowing consumers to "freeze" their credit reports have become increasingly popular.
A credit freeze, also referred to as a security freeze, blocks almost all access to a consumer's credit report. When a freeze is in place, a consumer reporting agency may not release a credit report or any of the report's information to businesses, thus stopping anyone (including the consumer) from opening a new line of credit under the consumer's name.

The first credit freeze the consumer reporting agencies

law was passed in Cali- may charge a fee, ranging from $3

fornia in 2001. Since to $20, to place a freeze or to have

then, 33 states and the a freeze lifted. Most states provide

District of Columbia that identity theft victims may

have enacted laws al- place a freeze free of charge.

G lowing any consumer to
place a freeze on his or her credit report. An additional four states

eorgia is currently one of only 13 states that have not enacted any law al-

(Arkansas, Kansas, Mis-

lowing consumers to

sissippi, and South Da- place security freezes on their kota) have passed laws credit files. During this year's legthat limit credit freezes islative session, three bills were

to victims of identity introduced in the Georgia House of

theft.

Representatives that would allow consumers to block access to their

Under these credit

credit reports. House Bills 35, 38,

freeze laws, a consumer and 130 would each provide a proc-

seeking to freeze his or ess by which Georgians could re-

her credit files must quest that a credit freeze be placed

contact the three con- on their credit files. All three bills

sumer reporting agencies in writ- provide similar procedures for

ing with their request. In South credit freezes, with the primary

Dakota, a credit freeze expires after difference between them being the

seven years from the date of place- fee that consumer reporting agen-

ment. In every other state with cies would be allowed to charge for

such a law, a credit freeze placing or removing a credit freeze.

stays in place indefi-

(Continued on Page 5)

nitely unless re-

moved by the con-

sumer. To lift a

freeze either tem-

porarily or per-

manently, the

consumer is re-

quired to give

the consumer

reporting

agencies a

special per-

sonal

identifi-

cation

number or

password that was is-

sued at the time the freeze was

initiated. Depending on state law, HB

38

Page Two

At Issue

Senate Research Office

At-A-Glance: Georgia's water management plan
(Continued from Page 1)

The Water Council will

before July 1st, then the plan sub- management practices that will be

review, modify if

mitted last in time by the Water implemented to keep the state's use

Council, but no later than the of water sustainable and protect

20th day of the session, will water quality. Water resource as-

have full force and effect on sessments will be conducted by

July 1st.

EPD and used by water planning

regions when developing required

The original draft of the water and development conserva-

Plan was written as a tion plans. Assessment of resource

"rule." However, many capacity will require compilation of

questions arose regard- a substantial information base, a

ing the legality of

comprehensive monitoring pro-

promulgating the gram, and a well-coordinated sys-

Plan as a "rule." On tem for information management.

August 21st, Attor-

ney General

Policies

Thurbert E.

Georgia will manage water re-

Baker issued an sources in a sustainable manner to

Advisory Opinion to support the state's economy, pro-

Dr. Couch, Director of EPD, tect public health and natural sys-

stating that the Act does not au- tems, and enhance the quality of

thorize the Water Council to

life for all citizens. The foundation

promulgate the Plan as a "rule." of the Plan is the integrated water

necessary and approve the final

Therefore, EPD will revise the

policy, which recognizes that water

draft of the Plan.

draft Plan to conform to this Advi- quality and quantity, as well as sur-

sory Opinion. The Water Council will then recommend the Plan to the Georgia The Plan, if adopted, will establish General Assembly no later than a set of policies to govern water the 1st day of the 2008 Legislative management decisions and a set of Session. The General Assembly will indicate its approval of the Plan by adopting a joint resolution. However, if the General Assembly

face and groundwater, are interrelated and require integrated planning. However, the Plan also explains the state's water quantity and water quality policies, which will be used by EPD in permitting decisions and in regional water planning efforts.

fails to approve the Plan, the Water Council may propose alternate

Management Practices

plans anytime before the 20th day

The Plan requires water users

of the session.

within defined water planning re-

gions to collectively prepare for the

If: (1) The General Assembly does

sustainable future use of the water

not approve a plan timely submit-

resources that serve that planning

ted by the Water Council; or (2) A

region. The state will establish the

statutory plan provided by an Act

water planning regions and will

of the General Assembly that ex-

provide each region with water re-

pressly supersedes any and all

source assessments from the water

plans submitted by the Water

sources within each region's area.

Council does not become law on or

(Continued on Page 4)

Page Three

At Issue

Senate Research Office

At-A-Glance: Georgia's water management plan
(Continued from Page 3)

These regions will develop water development and conservation plans using the water resource assessments, as well as forecasts of future water demands, to identify the water quantity management practices that may be implemented to ensure that water demands are met in a sustainable manner.

The state will also develop new or enhanced water quality management practices to restore impaired waters and protect clean waters that will be flexible enough to address the unique water quality issues in different parts of the state.

Regional Water Planning

The Director of EPD will pro-

pose, and following public com-

ment, will publish a final de-

lineation of water planning

regions that comprise one or

more water quantity and/or water quality resources, based on hydro-

Timetable

logic boundaries and the considera- State funding to support imple-
tion of other factors, such as juris- mentation of the Plan will be de- A Joint House and

dictional boundaries and existing veloped as part of the Governor's

infrastructure. The Director of FY09 budget proposal. Prepara-

EPD will also designate water

tory work in FY08 includes de-

planning councils to prepare water lineation of water planning re-

Senate Informational Water Plan Meeting will be held on September

development and conservation gions, designation of water plan- 17th at 1:00 P.M., in the

plans for each region. However, a water coun-

ning councils, and development of initial Requests for Proposals

Capitol Education

cil will not

(RFP's) and scope of work for ser- Center. Dr. Carol

be designated for the Metro-

vices in preparation of the water development and conservation plans.

Couch, Director of EPD, and Mr. Wayne

politan North Georgia Water Plan-

Allen, Deputy

Contingent on funding and other related activities, adoption of water

Legislative Counsel, will

development and conservation be presenting

ning District.

plans for all water planning re- information on the Plan.
gions may be completed in FY11.

Page Four

At Issue

Senate Research Office

Identity theft and credit freezing (Continued from Page 2)

explicitly states that consumer re-

blocking the release of the con-

As more states have porting agencies would not be per-
mitted to charge any fee for the

sumer's credit report. It does not, however, prevent thieves from ac-

placement, removal, or temporarily lifting of any security freeze. HB

turned

to

credit

cessing existing credit accounts by obtaining credit card information.

35 would allow consumer reporting agencies to charge a fee of up

freeze laws for

A credit freeze may not even stop every attempt to open a new credit

to $5 for placing, removing, or greater protection of account in a consumer's name if the

temporary lifting a freeze. HB 130,

creditor does not run a credit

which is modeled after North Caro- their citizens,

check. Moreover, consumers who

lina law, would allow a fee of up to

$10.

federal legislation

freeze their credit reports must plan in advance for situations in

However, HB 35 and HB 130 pro-

has been introduced

which access to their files is necessary.

vide that consumer reporting agencies may not charge any such fee to

on

the

topic

which,

if

onsumers could easily

victims of identity theft. All three bills remain before the House

adopted, would

find themselves having to lift their credit freeze

C Banking Committee.

supersede state laws.

not only to open a new line of credit, but also for manda-

s more states have turned to credit freeze laws for

Currently

tory credit checks by entities such as employers, landlords, insurers,

greater protection of
Atheir citizens, federal leg-

before

the

Senate

or utility companies.

Commerce islation has been introduced on the
topic which, if adopted, would su-

Credit freezes may not be a practical choice for all consumers; how-

persede state laws. Currently be- Committee, the Iden- ever, for those willing to deal with

fore the Senate Commerce Com-

the associated hassles and ex-

mittee, the Identity Theft Preven- tity Theft
tion Act of 2007 would allow any
consumer to place a credit freeze Prevention Act of

penses, a credit freeze can provide optimal protection from identity theft, and perhaps most impor-

on his or her files with the three major consumer reporting agencies

2007

would

allow

tantly, greater peace of mind.

for a cost of $30.

any consumer to

Portions of the information discussed herein were obtained from the

place a credit freeze Consumers would then be allowed
to lift the freeze up to twice a year

National Conference of State Legislatures, the Federal Trade

for free, with additional lifts costing $15.

on his or her files

Commission, Consumers Union, the National Crime Prevention Council,

Any consumer, before deciding to with the three major and the Atlanta Journal-Constitution.

place a freeze on their credit, needs to understand what a credit freeze

consumer reporting

can and cannot accomplish. A credit freeze prevents a criminal

agencies for a cost

of $ 30. from opening a new line of credit
under a consumer's name by

Page Five

At Issue

Senate Research Office

September Meetings of the Senate

Veterans and Military Affairs Committees Joint Meeting
Tuesday September 4, 10:00 a.m./341 Capitol

Senate Communications Taxes and Fees Study Committee
Thursday September 20, 10:00 a.m./450 Capitol

Joint Study Committee on Transportation Funding
Monday September 10 at 1:00 p.m. and Tuesday September 11 at 8:30 a.m./Valdosta Monday , September 24 and Tuesday, September 25 (Time TBA)/Capitol Education Center

Healthcare Transformation Study Committee
Monday September 10, 10:00 a.m./450 Capitol

Shortage of Doctors and Nurses Study Committee
Thursday September 13, 9:00 a.m./Macon

Stroke System of Care Study Committee
Thursday September 13, 10:00 a.m./Augusta

Subcommittees of the Joint Study Committee on Fulton County Fulton County Government Structure Subcommittee
Wednesday September 12, 2:30 p.m./403 Capitol
Fulton County Sheriff's Office Subcommittee
Monday September 17, 10:00 a.m./403 Capitol

Charter Advisory Committee
Friday September 14, 10:00 a.m./Georgia Public Broadcasting

Joint House and Senate Economic Development Committees
Friday September 14, 2:00 p.m./Tifton

EMS Recruitment and Retention Study Committee
Wednesday September 19, 10:00 a.m./Athens

Childhood Obesity Study Committee
Thursday September 20, 10:30 a.m./450 Capitol

Prescription Drugs Study Committee
Tuesday September 25, 1:00 a.m./125 Capitol

Tybee Island Study Committee
Thursday September 27 (Time TBA)/Tybee Island

Joint Study Committee on Continuing Education & Collegiate Sports Program for Students with Disabilities
Friday September 28, 3:00 p.m./Statesboro
*All meetings are tentative

Page Six

At Issue

Senate Research Office