Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committees on Consumer Protection & Commerce and Judiciary, to which was referred S.B. No. 2290, S.D. 2, entitled:

beg leave to report as follows:

The purpose of this bill is to protect individuals from identity theft by requiring businesses and government agencies that maintain records containing personal information to notify Hawaii residents when the safety of the resident's personal information has been compromised by unauthorized disclosure.

The Department of Commerce and Consumer Affairs, Honolulu Police Department, Retail Merchants of Hawaii, Hawaii Bankers Association, and AARP Hawaii supported this bill. The Hawaii Medical Service Association, Consumer Data Industry Association, and Hawaii Financial Services Association supported the intent of this measure. The American Council of Life Insurers, Property Casualty Insurers Association of America, and State Farm opposed this bill.

Personal information, such as social security numbers, driver's license numbers, and account numbers, is collected by many businesses and government agencies. Your Committees find that prompt notice of a security breach that endangers the privacy of this information is extremely important to allow owners of the information to monitor their credit reports and take other actions to protect themselves from identity theft.

Your Committees have amended this bill by:

As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2290, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2290, S.D. 2, H.D. 1, and be placed on the calendar for Third Reading.