Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committees on Commerce, Consumer Protection, and Housing and Media, Arts, Science, and Technology, to which was referred S.B. No. 2292 entitled:

beg leave to report as follows:

The purpose of this measure is to require businesses that maintain or possess personal information of Hawaii residents to protect against unauthorized access to or use of the information after its disposal by properly destroying the personal information.

Testimony in support of this measure was submitted by the Department of Commerce and Consumer Affairs, Hawaii Bankers Association, Retail Merchants of Hawaii, and the Honolulu Police Department. The American Council of Life Insurers and the Consumer Data Industry Association submitted comments on this measure.

Your Committees find that business records are a leading source of personal information for identity thieves. Any entity that maintains personal information as part of its business operations should establish security procedures to maintain the confidentiality and integrity of that information. This measure requires that businesses that collect personal identifying information take reasonable measures to protect this information against unauthorized access to or use by properly discarding and destroying the information. Establishing proper procedures for the destruction of this type of information is crucial to protect Hawaii's consumers.

Your Committees have amended this measure by:

As affirmed by the records of votes of the members of your Committees on Commerce, Consumer Protection, and Housing and Media, Arts, Science, and Technology that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2292, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2292, S.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.