SALT LAKE CITY -- Credit reports are readily accessible, and they include things like account information, dates of birth and Social Security numbers.

As a result, they have become a popular tool for identity thieves, who use them to drain accounts or open new ones in victims' names.

A bill that would put Utah at the fore of protecting people's credit reports, while also allowing expedited access for legitimate businesses, received a favorable recommendation from the Utah Senate Business and Labor Committee on Thursday.

The bill, sponsored by Sen. Carlene Walker, R-Cottonwood Heights, would allow people to put freezes on their credit reports, meaning they could be accessed only with a password.

Thirteen states have similar laws, but they all allow credit-reporting agencies days to respond to requests to unfreeze reports. To facilitate commerce, Walker's bill would require that credit-reporting agencies unfreeze reports in 15 minutes or less.

"The federal government is looking at this type of legislation," Walker told the committee. "We would like to create a precedent."

Attorney General Mark Shurtleff told the committee that 10 million people fall victim to identity theft each year in the U.S., resulting in $5 billion in losses to individuals, $10 billion in losses to businesses and 300 million hours spent by people working to restore their credit.

Shurtleff said his office has launched extensive enforcement and education efforts.

"We still need to do more about prevention," he said.

Craig Moody, a representative of the Consumer Data Industry Association, spoke against the bill. He said it would take 18 to 24 months before the country's three major reporting agencies are able to implement the requirements. The law would take effect Sept. 1, but enforcement would not begin until Sept. 1, 2007.

Moody also objected to penalties in the proposed law, which would allow people to sue for damages and court costs when credit-reporting agencies violate it.

"Whatever you establish here becomes what they have to do in every state in the nation," Moody told the committee. "If you decide to move in that direction (15 minutes), we need more time."

Representatives from the Utah Association of Realtors, the Utah Retail Merchants Association, the Utah Auto Dealers Association, the Utah Bankers Association and the American Association for Retired People spoke in favor of the bill.

"The 15 minutes is a compromise for us," said Jim Olsen of the Retail Merchants Association. "We would like to talk seconds, not minutes."

In speaking in favor of the bill, Sen. Sheldon Killpack, R-Syracuse, recalled his family's recent brush with identity theft when his wife's purse was stolen out of her car.

"That was just like a month-long root canal," said Killpack, a member of the committee. "I'm just a little disappointed that that industry hasn't taken more of a lead in this."

Committee Chairman Scott Jenkins, R-Plain City, said he thought 15 minutes was asking too much of credit-reporting agencies, since people voluntarily have their reports frozen.

"Now you want to put the onus on those companiesfi" he asked.

The bill received a favorable recommendation, 5-1, with Jenkins dissenting. It now will proceed to the full Senate.

Under the bill, credit reporting agencies could charge fees for freezing reports. People could sign up to have their reports frozen by paying the fees and sending certified letters.

SB 69: Protection of Information in Consumer Credit Databases

Sen. Carlene M. Walker, R-Salt Lake

This bill addresses the integrity of consumer credit databases.

This story appeared in The Daily Herald on page A4.