Bill Summary for Bill Number HB10-1056

Date: 02/25/2010

Final
BILL SUMMARY for HB10-1056

HOUSE COMMITTEE ON JUDICIARY

Votes: View-->	Action Taken:
Adopt prepared amendment L.010 (Attachment L). Th Adopt prepared amendment L.012 (Attachment O). Th Postpone indefinitely House Bill 10-1056. The mot Refer House Bill 10-1056, as amended, to the Commi	PASS PASS PASS FAIL

04:37 PM -- House Bill 10-1056

Representative Frangas, prime sponsor, presented House Bill 10-1056 concerning the disposal of business records containing personal identifying information. The bill requires every public and private entity in the state that uses paper or electronic documents or records during the course of business that contain personal identifying information to destroy those documents or records prior to disposing of them. Paper documents or records must be shredded. Entities disposing of electronic documents or records are required to erase and render indecipherable and irretrievable all personal identifying information contained in the document or record. Current law identifies "personal identifying information" as:

• a social security number;
• a personal identification number;
• a password;
• a pass code;
• an official state- or government-issued driver's license or identification card number;
• a government passport number;
• biometric data;
• an employer, student, or military identification number; or
• a financial transaction device.

Entities must establish a policy regarding the removal and destruction of personal identifying information during the course of the disposal of documents or records.

A violation of the requirements addressed above is subject to a civil penalty of no more than $500 for each document or record that is not disposed of correctly. The Attorney General or the district attorney in the judicial district where the offense occurs may bring an action to recover the civil penalty, costs, and reasonable attorney fees, as well as to obtain any other remedy, including but not limited to injunctive relief.

Representative Frangas distributed prepared amendment L.010 (Attachment L), which strikes everything below the enacting clause. He discussed the amendment at length. It eliminates the provisions of the bill that relate to electronic records disposal. The civil penalties are capped at $25,000 for a single incident. The amendment makes certain exceptions for theft or the actions of a third party. The committee discussed the strike below amendment. Representative Frangas responded to questions from the committee about the entities covered under the bill.

04:46 PM -- Loren Furman, Colorado Association of Commerce and Industry (CACI), spoke in opposition to the bill. Due to technical difficulties with the audio recording, Ms. Furman's testimony was not recorded.

04:58 PM -- Richard Sweetman, Office of Legislative Legal Services, appeared to respond to questions from the committee about the types of entities that would be covered by the bill.

05:03 PM -- Shayne Madsen, Consumer Data Industry Council, spoke in opposition to the bill. Ms. Madsen distributed a packet of information to the committee (Attachment M). She discussed her concerns with some technical aspects of the bill. Her clients are concerned specifically with federal statutes that deal with creditors, lenders, and others. Ms. Madsen responded to questions from the committee.

05:14 PM -- Sgt. Ryan McGinty, Denver Police Department, spoke in support of the bill. Sgt. McGinty discussed the investigation of identity theft and fraud cases, relating his experience as a police officer.

05:19 PM -- Jack Arrowsmith and Nancy Sotomayor, Colorado County Clerks Association, stated that they are studying the bill.

05:23 PM

Representative Frangas distributed prepared amendments L.011 and L.012 (Attachments N and O). He explained the amendments and wrapped up his presentation of the bill.


BILL:	HB10-1056
TIME:	05:29:18 PM
MOVED:	Court
MOTION:	Adopt prepared amendment L.010 (Attachment L). The motion passed on a vote of 8-1, with 2 excused.
SECONDED:	Levy
		VOTE
	Court	No
	Gardner B.	Yes
	Kagan	Yes
	King S.	Excused
	Miklosi	Excused
	Nikkel	Yes
	Pace	Yes
	Ryden	Yes
	Waller	Yes
	McCann	Yes
	Levy	Yes

Not Final YES: 8 NO: 1 EXC: 2 ABS: 0 FINAL ACTION: PASS


BILL:	HB10-1056
TIME:	05:31:40 PM
MOVED:	Kagan
MOTION:	Adopt prepared amendment L.012 (Attachment O). The motion passed on a vote of 5-4, with 2 excused.
SECONDED:	Court
		VOTE
	Court	Yes
	Gardner B.	No
	Kagan	Yes
	King S.	Excused
	Miklosi	Excused
	Nikkel	No
	Pace	Yes
	Ryden	Yes
	Waller	No
	McCann	Yes
	Levy	No

Not Final YES: 5 NO: 4 EXC: 2 ABS: 0 FINAL ACTION: PASS


BILL:	HB10-1056
TIME:	05:38:48 PM
MOVED:	Gardner B.
MOTION:	Refer House Bill 10-1056, as amended, to the Committee on Appropriations with a favorable recommendation. Members of the committee commented about their positions on the bill. The motion failed on a vote of 2-7, with 2 excused.
SECONDED:	McCann
		VOTE
	Court	No
	Gardner B.	No
	Kagan	No
	King S.	Excused
	Miklosi	Excused
	Nikkel	No
	Pace	Yes
	Ryden	No
	Waller	No
	McCann	No
	Levy	Yes

Not Final YES: 2 NO: 7 EXC: 2 ABS: 0 FINAL ACTION: FAIL


BILL:	HB10-1056
TIME:	05:39:42 PM
MOVED:	Waller
MOTION:	Postpone indefinitely House Bill 10-1056. The motion passed on a vote of 6-3 with 2 excused.
SECONDED:	Nikkel
		VOTE
	Court	No
	Gardner B.	Yes
	Kagan	Yes
	King S.	Excused
	Miklosi	Excused
	Nikkel	Yes
	Pace	No
	Ryden	Yes
	Waller	Yes
	McCann	Yes
	Levy	No

Final YES: 6 NO: 3 EXC: 2 ABS: 0 FINAL ACTION: PASS

05:40 PM

Representative Levy adjourned the committee.