[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1742 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1742

     To prevent the crime of identity theft, mitigate the harm to 
   individuals victimized by identity theft, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 29, 2001

 Ms. Cantwell introduced the following bill; which was read twice and 
               referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
     To prevent the crime of identity theft, mitigate the harm to 
   individuals victimized by identity theft, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Restore Your Identity Act of 2001''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the crime of identity theft is the fastest growing 
        crime in the United States;
            (2) the Federal Trade Commission reports that between March 
        and June of 2001, the total number of identity theft victims in 
        the Commission's Complaint Clearinghouse System, tallied from 
        November 1999, increased from 45,593 to 69,370;
            (3) consumer inquiries and complaints to the Federal Trade 
        Commission Identity Theft Hotline increased from 68,000 to over 
        97,000 over the same 3-month period, and consumer calls into 
        the Hotline increased in the same period from 1,800 calls per 
        week to over 2,000;
            (4) the Federal Trade Commission estimates that the call 
        volume to the Identity Theft Hotline represents only 5 to 10 
        percent of the actual number of victims of identity theft;
            (5) victims of identity theft often have extraordinary 
        difficulty restoring their credit and regaining control of 
        their identity because of the viral nature of identity theft;
            (6) identity theft may be ruinous to the good name and 
        credit of consumers whose identities are misappropriated, and 
        victims of identity theft may be denied otherwise well-deserved 
        credit, may have to spend enormous time, effort, and sums of 
        money to remedy their circumstances, and may suffer extreme 
        emotional distress including deep depression founded in 
        profound frustration as they address the array of problems that 
        may arise as a result of identity theft;
            (7) victims are often required to contact numerous Federal, 
        State, and local law enforcement agencies, consumer credit 
        reporting agencies, and creditors over many years, as each 
        event of fraud arises;
            (8) the Government, business entities, and credit reporting 
        agencies have a shared responsibility to assist identity theft 
        victims, to mitigate the harm that results from fraud 
        perpetrated in the victim's name;
            (9) victims of identity theft need a nationally 
        standardized means of--
                    (A) reporting identity theft to law enforcement, 
                consumer credit reporting agencies, and business 
                entities; and
                    (B) evidencing their true identity to business 
                entities and credit reporting agencies;
            (10) one of the greatest law enforcement challenges posed 
        by identity theft is that stolen identities are often used to 
        perpetrate crimes in many different localities in different 
        States, and although identity theft is a Federal crime, most 
        often, State and local law enforcement agencies are responsible 
        for investigating and prosecuting the crimes; and
            (11) the Federal Government should assist State and local 
        law enforcement agencies to effectively combat identity theft 
        and the associated fraud.

SEC. 3. DEFINITIONS.

    In this Act, the following definitions shall apply:
            (1) Business entity.--The term ``business entity'' means--
                    (A) a creditor, as that term is defined in section 
                103 of the Truth in Lending Act (15 U.S.C. 1602);
                    (B) any financial information repository;
                    (C) any financial service provider; and
                    (D) any corporation, trust, partnership, sole 
                proprietorship, or unincorporated association 
                (including telecommunications, utilities, and other 
                service providers).
            (2) Consumer.--The term ``consumer'' means an individual.
            (3) Financial information.--The term ``financial 
        information'' means information identifiable as relating to an 
        individual consumer that concerns the amount and conditions of 
        the assets, liabilities, or credit of the consumer, including--
                    (A) account numbers and balances;
                    (B) nonpublic personal information, as that term is 
                defined in section 509 of the Gramm-Leach-Bliley Act 
                (15 U.S.C. 6809); and
                    (C) codes, passwords, social security numbers, tax 
                identification numbers, State identifier numbers issued 
                by a State department of licensing, and other 
                information used for the purpose of account access or 
                transaction initiation.
            (4) Financial information repository.--The term ``financial 
        information repository'' means a person engaged in the business 
        of providing services to consumers who have a credit, deposit, 
        trust, stock, or other financial services account or 
        relationship with that person.
            (5) Identity theft.--The term ``identity theft'' means an 
        actual or potential violation of section 1028 of title 28, 
        United States Code, or any other similar provision of Federal 
        or State law.
            (6) Means of identification.--The term ``means of 
        identification'' has the meanings given the terms 
        ``identification document'' and ``means of identification'' in 
        section 1028 of title 18, United States Code.
            (7) Victim.--The term ``victim'' means a consumer whose 
        means of identification or financial information has been used 
        or transferred (or has been alleged to have been used or 
        transferred) without the authority of that consumer with the 
        intent to commit, or to aid or abet, identity theft or any 
        other violation of law.

SEC. 4. IDENTITY THEFT TREATED AS RACKETEERING ACTIVITY.

    Section 1961(1)(B) of title 18, United States Code, is amended by 
inserting ``, or any similar offense chargeable under State law'' after 
``identification documents)''.

SEC. 5. TREATMENT OF IDENTITY THEFT MITIGATION.

    (a) Information Available to Victims.--
            (1) In general.--A business entity possessing information 
        relating to an identity theft, or who may have entered into a 
        transaction, provided credit, products, goods, or services, 
        accepted payment, or otherwise done business with a person that 
        has made unauthorized use of the means of identification of the 
        victim, shall, not later than 10 days after receipt of a 
        written request by the victim, provide, without charge, to the 
        victim or to any Federal, State, or local governing law 
        enforcement agency or officer specified by the victim copies of 
        all related application and transaction information and any 
        information required pursuant to subsection (b).
            (2) Rule of construction.--Nothing in this section requires 
        a business entity to disclose information that the business 
        entity is otherwise prohibited from disclosing under any other 
        provision of Federal or State law, except that any such 
        provision of law that prohibits the disclosure of financial 
        information to third parties shall not be used to deny 
        disclosure of information to the victim under this section.
    (b) Verification of Identity.--
            (1) In general.--Unless a business entity is otherwise able 
        to verify the identity of a victim making a request under 
        subsection (a)(1), the victim shall provide to the business 
        entity as proof of positive identification, at the election of 
        the business entity--
                    (A) a copy of a police report evidencing the claim 
                of the victim of identity theft;
                    (B) a copy of a standardized affidavit of identity 
                theft developed and made available by the Federal Trade 
                Commission; or
                    (C) any affidavit of fact that is acceptable to the 
                business entity for that purpose.
    (c) Limitation on Liability.--No business entity may be held liable 
for an action taken in good faith to provide information under this 
section with respect to an individual in connection with an identity 
theft to other financial information repositories, financial service 
providers, merchants, law enforcement authorities, victims, or any 
person alleging to be a victim, if--
            (1) the business entity complies with subsection (b); and
            (2) such action was taken--
                    (A) for the purpose of identification and 
                prosecution of identity theft; or
                    (B) to assist a victim in recovery of fines, 
                restitution, rehabilitation of the credit of the 
                victim, or such other relief as may be appropriate.
    (d) Authority To Decline To Provide Information.--A business entity 
may decline to provide information pursuant to subsection (a) if, in 
the exercise of good faith and reasonable judgment, the business entity 
believes that--
            (1) this section does not require disclosure of the 
        information; or
            (2) the request for the information is based on a 
        misrepresentation of fact by the victim relevant to the request 
        for information.
    (e) No New Recordkeeping Obligation.--Nothing in this section 
creates an obligation on the part of a business entity to retain or 
maintain information or records that are not otherwise required to be 
retained or maintained in the ordinary course of its business or under 
other applicable law.

SEC. 6. AMENDMENTS TO THE FAIR CREDIT REPORTING ACT.

    (a) Consumer Reporting Agency Blocking of Information Resulting 
From Identity Theft.--Section 611 of the Fair Credit Reporting Act (15 
U.S.C. 1681i) is amended by adding at the end the following:
    ``(e) Block of Information Resulting From Identity Theft.--
            ``(1) Block.--Not later than 30 days after the date of 
        receipt of proof of the identity of a consumer and an official 
        copy of a police report evidencing the claim of the consumer of 
        identity theft, a consumer reporting agency shall permanently 
        block the reporting of any information identified by the 
        consumer in the file of the consumer resulting from the 
        identity theft, so that the information cannot be reported, 
except as provided in paragraph (3).
            ``(2) Notification.--A consumer reporting agency shall 
        promptly notify the furnisher of information identified by the 
        consumer under paragraph (1) that the information may be a 
        result of identity theft, that a police report has been filed, 
        that a block has been requested under this subsection, and the 
        effective date of the block.
            ``(3) Authority to decline or rescind.--
                    ``(A) In general.--A consumer reporting agency may 
                decline to block, or may rescind any block, of consumer 
                information under this subsection if--
                            ``(i) in the exercise of good faith and 
                        reasonable judgment, the consumer reporting 
                        agency believes that--
                                    ``(I) the information was blocked 
                                due to a misrepresentation of fact by 
                                the consumer relevant to the request to 
                                block; or
                                    ``(II) the consumer knowingly 
                                obtained possession of goods, services, 
                                or moneys as a result of the blocked 
                                transaction or transactions, or the 
                                consumer should have known that the 
                                consumer obtained possession of goods, 
                                services, or moneys as a result of the 
                                blocked transaction or transactions; or
                            ``(ii) the consumer agrees that the blocked 
                        information or portions of the blocked 
                        information were blocked in error.
                    ``(B) Notification to consumer.--If the block of 
                information is declined or rescinded under this 
                paragraph, the affected consumer shall be notified 
                promptly, in the same manner as consumers are notified 
                of the reinsertion of information pursuant to 
                subsection (a)(5)(B).
                    ``(C) Significance of block.--For purposes of this 
                paragraph, the prior presence of blocked information in 
                the file of a consumer is not evidence of whether the 
                consumer knew or should have known that the consumer 
                obtained possession of any goods, services, or monies 
                as a result of the block.''.
    (b) Statute of Limitations.--Section 618 of the Fair Credit 
Reporting Act (15 U.S.C. 1681p) is amended by striking ``jurisdiction'' 
and all that follows through ``years after'' and inserting 
``jurisdiction, not later than 2 years after''.

SEC. 7. COMMISSION STUDY OF COORDINATION BETWEEN FEDERAL, STATE, AND 
              LOCAL AUTHORITIES IN ENFORCING IDENTITY THEFT LAWS.

    (a) Membership.--Section 2(b) of the Internet False Identification 
Prevention Act of 2000 (18 U.S.C. 1028 note) is amended by inserting 
``the Postmaster General, the Commissioner of the United States Customs 
Service,'' after ``Trade Commissioner''.
    (b) Consultation.--Section 2 of the Internet False Identification 
Prevention Act of 2000 (18 U.S.C. 1028 note) is amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following:
    ``(d) Consultation.--The coordinating committee shall consult with 
interested parties, including State and local law enforcement agencies, 
State attorneys general, representatives of business entities (as that 
term is defined in section 4 of the Restore Your Identity Act of 2001), 
including telecommunications and utility companies, and organizations 
representing consumers.''.
    (c) Report Contents.--Section 2(e) of the Internet False 
Identification Prevention Act of 2000 (18 U.S.C. 1028 note) (as 
redesignated by this section) is amended--
            (1) in subparagraph (E), by striking ``and'' at the end; 
        and
            (2) by striking subparagraph (F) and inserting the 
        following:
                    ``(F) a comprehensive description of Federal 
                assistance to address identity theft provided to State 
                and local law enforcement agencies;
                    ``(G) a comprehensive description of coordination 
                activities between Federal, State, and local law 
                enforcement agencies in regard to addressing identity 
                theft and recommendations, if any, for legislative 
                changes that could facilitate more effective 
                investigation and prosecution of the creation and 
                distribution of false identification documents;
                    ``(H) a comprehensive description of how the 
                Federal Government can best provide to State and local 
                law enforcement agencies timely and current information 
                regarding terrorists or terrorist activity where such 
                information specifically relates to identity theft; and
                    ``(I) recommendations, if any, for legislative or 
                administrative changes that would--
                            ``(i) facilitate more effective 
                        investigation and prosecution of cases 
                        involving identity theft;
                            ``(ii) improve the effectiveness of Federal 
                        assistance to State and local law enforcement 
                        agencies and coordination between Federal, 
                        State, and local law enforcement agencies;
                            ``(iii) simplify efforts by a person 
                        necessary to rectify the harm that results from 
                        the theft of the identity of the person; and
                            ``(iv) if deemed appropriate, provide for 
                        the establishment of a Federal identity theft 
                        and false identification office or agency.''.

SEC. 8. ENFORCEMENT BY STATE ATTORNEYS GENERAL.

    (a) In General.--
            (1) Civil actions.--In any case in which the attorney 
        general of a State has reason to believe that an interest of 
        the residents of that State has been or is threatened or 
        adversely affected by the engagement of any person in a 
        practice that is prohibited under this Act or under any 
        amendment made by this Act, the State, as parens patriae, may 
        bring a civil action on behalf of the residents of the State in 
        a district court of the United States of appropriate 
        jurisdiction to--
                    (A) enjoin that practice;
                    (B) enforce compliance with this Act or the 
                amendments made by this Act;
                    (C) obtain damage, restitution, or other 
                compensation on behalf of residents of the State; or
                    (D) obtain such other relief as the court may 
                consider to be appropriate.
            (2) Notice.--
                    (A) In general.--Before filing an action under 
                paragraph (1), the attorney general of the State 
                involved shall provide to the Attorney General of the 
                United States--
                            (i) written notice of the action; and
                            (ii) a copy of the complaint for the 
                        action.
                    (B) Exemption.--
                            (i) In general.--Subparagraph (A) shall not 
                        apply with respect to the filing of an action 
                        by an attorney general of a State under this 
                        subsection, if that attorney general determines 
                        that it is not feasible to provide the notice 
                        described in subparagraph (A) before the filing 
                        of the action.
                            (ii) Notification.--In an action described 
                        in clause (i), the attorney general of a State 
                        shall provide notice and a copy of the 
                        complaint to the Attorney General of the United 
                        States at the same time as the action is filed.
    (b) Intervention.--
            (1) In general.--On receiving notice of an action under 
        subsection (a)(2), the Attorney General of the United States 
        shall have the right to intervene in that action.
            (2) Effect of intervention.--If the Attorney General of the 
        United States intervenes in an action under subsection (a), the 
        Attorney General shall have the right to be heard with respect 
        to any matter that arises in that action.
    (c) Construction.--For purposes of bringing any civil action under 
subsection (a), nothing in this Act or the amendments made by this Act 
shall be construed to prevent an attorney general of a State from 
exercising the powers conferred on such attorney general by the laws of 
that State--
            (1) to conduct investigations;
            (2) to administer oaths or affirmations; or
            (3) to compel the attendance of witnesses or the production 
        of documentary and other evidence.
    (d) Actions by the Attorney General of the United States.--In any 
case in which an action is instituted by or on behalf of the Attorney 
General of the United States for violation of a practice that is 
prohibited under this Act or under any amendment made by this Act, no 
State may, during the pendency of that action, institute an action 
under subsection (a) against any defendant named in the complaint in 
that action for violation of that practice.
    (e) Venue; Service of Process.--
            (1) Venue.--Any action brought under subsection (a) may be 
        brought in the district court of the United States that meets 
        applicable requirements relating to venue under section 1391 of 
        title 28, United States Code.
            (2) Service of process.--In an action brought under 
        subsection (a), process may be served in any district in which 
        the defendant--
                    (A) is an inhabitant; or
                    (B) may be found.
                                 <all>