Published:Saturday, April 15, 2006 11:53 AM PDT
Serving the South Coast of Oregon

Lawmakers move on data theft-security bill
Saturday, April 15, 2006 11:53 AM PDT

PORTLAND (AP) - The theft of 365,000 patients' records from Providence Health System has prompted lawmakers to push new data protection laws in Oregon.

Oregon has no law requiring companies to report security breaches, unlike California, Washington and at least 23 other states. An Oregon security-breach bill went nowhere last year in the Legislature.

But momentum is building, with Providence joining consumer groups and state regulators Thursday in calling for protections from identity theft at a legislative hearing in Portland.

“We are the poster child in the state, maybe nationally, for data theft,” said Rick Cagen, Providence Health System's Portland-area chief executive. Cagen said the company wants to be seen as a leader among businesses responding to security breaches.

Three elements are emerging as likely components of security-breach legislation to be introduced next year:

€ Requiring businesses to quickly report the loss or theft of confidential information to consumers.

€ Setting enforceable standards for safeguarding personal information businesses collect, such as restricting the use and handling of Social Security numbers.

€ Giving consumers a security “freeze” option, enabling them to stop the release of their credit history and making it more difficult for identity thieves to create fraudulent credit cards and checking accounts.

During last year's legislative session, many industries opposed the credit freeze provision.

Auto dealers said delays in providing financing could hurt sales. Credit rating companies, which would be hampered in selling information, argued that consumers would be inconvenienced by delays in arranging credit and not necessarily protected from identity theft.

Jim Craven, who represents the American Electronics Association in Oregon said his trade group of technology companies would prefer a national standard but won't oppose an Oregon law. His companies increasingly depend on Internet commerce.

“We think for the good of e-commerce we need to address these issues,” Craven said.


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