STAND. COM. REP. NO.  167

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 678

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Economic Revitalization & Business, to which was referred H.B. No. 678 entitled:

"A BILL FOR AN ACT RELATING TO INFORMATION,"

begs leave to report as follows:

     The purpose of this bill is to assist individuals who may become victims of identity theft and other related crimes by requiring any business or government agency responsible for a security breach to pay the costs of providing each person whose personal information was disclosed with, at a minimum, a three-year subscription to a credit reporting agency's services.

     Two concerned individuals supported this bill.  The Hawaii Bankers Association, Hawaii Credit Union League, and American Council of Life Insurers opposed this measure.  The Consumer Data Industry Association submitted comments.

     Upon further consideration and based on concerns raised in the public testimony regarding this bill, your Committee has amended this measure by:

     (1)  Deleting references to businesses and narrowing its scope to apply solely to government agencies;

     (2)  Clarifying that the minimum three-year subscriptions are for a nationwide consumer reporting agency, as defined under the Fair Credit Reporting Act, to conform to federal law; and

     (3)  Making technical, nonsubstantive amendments for style, clarity, and consistency.

     As affirmed by the record of votes of the members of your Committee on Economic Revitalization & Business that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 678, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 678, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Economic Revitalization & Business,

____________________________

ANGUS L.K. MCKELVEY, Chair