AUGUSTA (AP) – A new state law that goes into effect in January is designed to give Mainers added protection against identity theft.

At a ceremonial bill-signing on Friday, Gov. John Baldacci and lawmakers gathered to show support for the law that requires companies that store and sell credit reports, bank account numbers and other personal information to notify Maine consumers if that information has been compromised.

The law also imposes new fines and proposes studies to curb identity theft in the future.

Rep. Deborah Pelletier-Simpson, D-Auburn, said she sponsored the bill because Maine people need to know when their personal information has been lost or stolen to properly protect themselves.

Pelletier-Simpson said she was motivated by a security breach at ChoicePoint Inc., a Georgia-based company that disclosed in February that names, addresses, Social Security numbers and credit reports had been stolen.

The company sent letters about the breach to consumers in California because it was bound by California law to do so. There was no such law in Maine, although the company voluntarily notified about 250 Mainers that their information could have been obtained illegally.

“Since these companies are making money by collecting consumers’ personal information, they have an ethical obligation to protect that information and to guarantee the security of an individual’s identity,” she said.

The law also calls for a study to be conducted this summer to find out whether the state needs to take more steps to protect consumers from identity theft, said Lloyd LaFountain, superintendent of financial institutions at the state Department of Professional and Financial Regulation.

The report is due to be completed by February, which will give lawmakers time to consider the possibility of additional legislation.

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Information from: Kennebec Journal, http://www.kjonline.com/

AP-ES-07-09-05 1316EDT