CONFERENCE COMMITTEE REP. NO.31
Honolulu, Hawaii
, 2001
RE: S.B. No. 1550
S.D. 2
H.D. 1
C.D. 1
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Sir:
Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 1550, S.D. 2, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO INSURANCE,"
having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.
The purpose of this measure is to protect the privacy of nonpublic personal financial information.
This measure requires an insurance licensee to provide its customers with notice of its privacy policies and practices before disclosing nonpublic personal financial information about the customer to a nonaffiliated third party and of the customer's right to "opt out" of the sharing of the customer's information. The measure imposes requirements relating to the contents of notices and their manner of delivery, establishes limits on the disclosure and use of information, and establishes exceptions to these limits.
Your Committee has amended this measure by replacing its contents with the language of the Senate version, except where retaining language contained in the House version would result in greater accuracy and clarity, and by making additional amendments. As amended, this measure:
(1) Deletes unnecessary language that deviates from the National Association of Insurance Commissioners' draft language and that expressly limits application of the measure to licensees that hold or maintain nonpublic personal financial information;
(2) Includes a definition for the term "commissioner";
(3) Provides the commissioner with the discretion to determine whether an entity's power to exercise, directly or indirectly, a controlling influence over the management or policies of a company constitutes "control", as defined in the proposed new article;
(4) In proposed section 431:- -302, Hawaii Revised Statutes, cross-references the specific statutory sections that establish exceptions to the notice and opt out requirements;
(5) Deems a licensee in the process of complying with the rules of the Health Insurance Portability and Accountability Act of 1996 to be compliance with the requirements established in the measure;
(6) Makes technical, nonsubstantive changes for purposes of clarity and style; and
(7) Takes effect upon approval, rather than on July 1, 2050.
Finally, your Committee notes that it is its intent that this measure shall govern only the privacy of nonpublic personal financial information and not health information.
As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 1550, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 1550, S.D. 2, H.D. 1, C.D. 1.
Respectfully submitted on behalf of the managers:
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ON THE PART OF THE HOUSE |
ON THE PART OF THE SENATE |
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____________________________ KENNETH T. HIRAKI, Co-Chair |
____________________________ RON MENOR, Chair |
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____________________________ BLAKE K. OSHIRO, Co-Chair |
____________________________ BRIAN KANNO, Co-Chair |