House File 612 - Introduced



                                HOUSE FILE       
                                BY  COMMITTEE ON COMMERCE,
                                     REGULATION AND LABOR

                                (SUCCESSOR TO HSB 210)


    Passed House, Date                Passed Senate,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to identity theft including criminal violations
  2    and damages recoverable in a civil action, providing for
  3    forfeiture of property and for certain rights of financial
  4    institutions, and providing for civil remedies.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 2371HV 81
  7 kk/sh/8

PAG LIN



  1  1    Section 1.  NEW SECTION.  614.4A  IDENTITY THEFT.
  1  2    In actions for relief on the ground of identity theft under
  1  3 section 714.16B, the cause of action shall not be deemed to
  1  4 have accrued until the identity theft complained of is
  1  5 discovered by the party aggrieved.
  1  6    Sec. 2.  Section 714.16B, Code 2005, is amended to read as
  1  7 follows:
  1  8    714.16B  IDENTITY THEFT == CIVIL CAUSE OF ACTION.
  1  9    In addition to any other remedies provided by law, a person
  1 10 as defined under section 714.16, subsection 1, suffering a
  1 11 pecuniary loss as a result of an identity theft by another
  1 12 person under section 715A.8, or a financial institution on
  1 13 behalf of an account holder suffering a pecuniary loss as a
  1 14 result of an identity theft by another person under section
  1 15 715A.8, may bring an action against such other person to
  1 16 recover all of the following:
  1 17    1.  One Five thousand dollars or three times the actual
  1 18 damages, whichever is greater.
  1 19    2.  Reasonable costs incurred due to the violation of
  1 20 section 715A.8, including all of the following:
  1 21    a.  Costs for repairing the victim's credit history or
  1 22 credit rating.
  1 23    b.  Costs incurred for bringing a civil or administrative
  1 24 proceeding to satisfy a debt, lien, judgment, or other
  1 25 obligation of the victim.
  1 26    c.  Punitive damages, attorney fees, and court costs.
  1 27    For purposes of this section, "financial institution" means
  1 28 the same as defined in section 527.2, and includes an insurer
  1 29 organized under Title XIII, subtitle 1, of this Code, or under
  1 30 the laws of any other state or the United States.
  1 31    Sec. 3.  Section 715A.8, subsection 1, Code 2005, is
  1 32 amended to read as follows:
  1 33    1.  a.  For purposes of this section, "identification
  1 34 information" means includes, but is not limited to, the name,
  1 35 address, date of birth, telephone number, driver's license
  2  1 number, nonoperator's identification card number, social
  2  2 security number, student identification number, military
  2  3 identification number, alien identification or citizenship
  2  4 status number, employer identification number, signature,
  2  5 electronic mail signature, electronic identifier or screen
  2  6 name, biometric identifier, genetic identification
  2  7 information, access device, logo, symbol, trademark, place of
  2  8 employment, employee identification number, parent's legal
  2  9 surname prior to marriage, demand deposit account number,
  2 10 savings or checking account number, or credit card number of a
  2 11 person.
  2 12    b.  For purposes of this section, "financial institution"
  2 13 means the same as defined in section 527.2, and includes an
  2 14 insurer organized under Title XIII, subtitle 1, of this Code,
  2 15 or under the laws of any other state or the United States.
  2 16    Sec. 4.  Section 715A.8, Code 2005, is amended by adding
  2 17 the following new subsections:
  2 18    NEW SUBSECTION.  5.  Violations of this section shall be
  2 19 prosecuted in any of the following venues:
  2 20    a.  In the county in which the violation occurred.
  2 21    b.  If the violation was committed in more than one county,
  2 22 or if the elements of the offense were committed in more than
  2 23 one county, then in any county where any violation occurred or
  2 24 where an element of the offense occurred.
  2 25    c.  In the county where the victim resides.
  2 26    d.  In the county where the property that was fraudulently
  2 27 used or attempted to be used was located at the time of the
  2 28 violation.
  2 29    NEW SUBSECTION.  6.  Any real or personal property obtained
  2 30 by a person as a result of a violation of this section,
  2 31 including but not limited to any money, interest, security,
  2 32 claim, contractual right, or financial instrument that is in
  2 33 the possession of the person, shall be subject to seizure and
  2 34 forfeiture pursuant to chapter 809A.  A victim injured by a
  2 35 violation of this section, or a financial institution that has
  3  1 indemnified a victim injured by a violation of this section,
  3  2 may file a claim as an interest holder pursuant to section
  3  3 809A.11 for payment of damages suffered by the victim
  3  4 including costs of recovery and reasonable attorney fees.
  3  5    NEW SUBSECTION.  7.  A financial institution may file a
  3  6 complaint regarding a violation of this section on behalf of a
  3  7 victim and shall have the same rights and privileges as the
  3  8 victim if the financial institution has indemnified the victim
  3  9 for such violations.
  3 10    NEW SUBSECTION.  8.  Upon the request of a victim, a peace
  3 11 officer in any jurisdiction described in subsection 5 shall
  3 12 take a report regarding an alleged violation of this section
  3 13 and shall provide a copy of the report to the victim.  The
  3 14 report may also be provided to any other law enforcement
  3 15 agency in any of the jurisdictions described in subsection 5.
  3 16                           EXPLANATION
  3 17    This bill relates to the offense of identity theft,
  3 18 including providing for civil causes of action, and the rights
  3 19 of financial institutions regarding violations.
  3 20    The bill expands the definition of "identification
  3 21 information" to include a student or military identification
  3 22 number, alien or citizenship number, employer identification
  3 23 number, signature or electronic signature, electronic
  3 24 identifier or screen name, biometric identifier, genetic
  3 25 identification information, access device, logo, symbol, or
  3 26 trademark.  The bill provides a definition of "financial
  3 27 institution".
  3 28    The bill describes the appropriate venues in which
  3 29 violations may be prosecuted.  The bill provides that any
  3 30 property obtained by a person as a result of identity theft
  3 31 that is in the possession of the person is subject to seizure
  3 32 and forfeiture pursuant to Code chapter 809A.  Either a
  3 33 victim, or a financial institution that has indemnified a
  3 34 victim, may act as an interest holder and file a claim for
  3 35 forfeited property for the payment of damages suffered by the
  4  1 victim due to the violation.
  4  2    The bill provides that a financial institution may file a
  4  3 complaint of identity theft on behalf of a victim.  A peace
  4  4 officer shall take a complaint in a report of identity theft
  4  5 at the request of a victim and provide a copy of the report to
  4  6 the victim.  The peace officer may also provide copies of the
  4  7 report to a law enforcement agency in another jurisdiction
  4  8 with proper venue.
  4  9    The bill provides that a financial institution may file a
  4 10 civil action on behalf of an account holder who has suffered a
  4 11 loss of money due to identity theft.  The civil action filed
  4 12 by or on behalf of a victim may seek certain damages described
  4 13 by the bill.  The bill increases the amount of statutory
  4 14 damages available from $1,000 or three times the actual
  4 15 damages to $5,000 or three times the actual damages, and
  4 16 provides for the recovery of costs for the repair of a
  4 17 victim's credit history, costs incurred for bringing an action
  4 18 to satisfy an obligation of the victim, and for punitive
  4 19 damages.  Current law already provides for recovery of
  4 20 attorney fees and court costs.
  4 21    The bill provides that for the purpose of determining the
  4 22 statute of limitations period for civil actions to recover
  4 23 losses incurred due to identity theft, the limitations period
  4 24 shall not begin to run until the victim discovers the identity
  4 25 theft.
  4 26 LSB 2371HV 81
  4 27 kk:nh/sh/8