NEWS MAIN Business group tries to kill shredding billA heavyweight business group is trying to kill a proposal that would require companies to shred documents containing consumers' personal and financial data to help reduce identity theft and credit card fraud. The National Federation of Independent Business is leading the opposition to state legislation aimed at reducing ID theft. Arizona has the worst ID theft rate among U.S. states, and Phoenix has the worst rate among major metropolitan areas. NFIB does not like provisions requiring businesses in the state to shred or erase confidential personal data before disposing of that information. The bill -- which is sponsored by state Rep. Eddie Farnsworth, R-Gilbert -- imposes fines of as much as $5,000 per violation for companies not protecting consumer data. The small-business group thinks the shredding requirement is too much of a burden for smaller companies. NFIB has 600,000 members nationally and 10,000 members in Arizona. The Farnsworth bill (HB 2351) also would give county attorneys the power to subpoena business records and give local prosecutors and the State Attorney General's Office more latitude in prosecuting ID theft cases and instances of improper business disposal of personal data. The proposal comes on the heels of cases in which some insurance agents and medical offices discarded customers' and patients' personal files in dumpsters without shredding or any other privacy protections. NFIB is lobbying Senate Commerce Committee Chair Barbara Leff, R-Paradise Valley, to put the shredding/ID theft plan in a legislative coma by not giving the bill a hearing in that committee. The plan needs to move through Leff's committee in order to gain Senate passage. Leff is a strong ally of NFIB and the business lobby at the state Capitol. NFIB, Leff and Farnsworth did not respond to requests for comment. The ID theft/shredding bill creates some heartburn with business groups worried about the subpoena powers and its potential impact on employers and businesses. Farrell Quinlan, vice president of the Arizona Chamber of Commerce & Industry, said his group had concerns about the "search warrant" powers given in the bill, as well as other impacts on businesses. "That's a big concern," said Quinlan. The proposal exempts banks and financial institutions covered by new federal regulation with the same aims. Supporters counter that the shredding requirements and subpoena powers are needed to protect consumer data and get businesses to better safeguard information. State Attorney General Terry Goddard supports the shredding requirement. "I am supportive of the shredding requirement, and I am pleased that it is part of this legislation. My office has seen hundreds of victims of ID theft, where the thieves take documents with personal identifying information from store dumpsters," said Goddard, a Democrat. "Shredding would dramatically reduce the potential of consumers' IDs from being stolen." Goddard has pushed for a number of tougher consumer protections in recent years, including a price-gouging law and new rules related to lending practices, but has not garnered support for those efforts from the Republican-majority state assembly. The shredding bill passed the state House of Representatives earlier this month. National Federation of Independent Business: www.nfib.com/az. Labels: business shredding , identity theft
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Confidata, located in Utica New York, is a member of NAID and follows FACTA and HIPAA records destruction requirements. Confidata offers secure onsite and mobile shredding services. CONFIDATA is a division of Empire Recycling Corporation |