HB2309 HD1.DOC

HOUSE OF REPRESENTATIVES	H.B. NO.	2309
TWENTY-SIXTH LEGISLATURE, 2012		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO PERSONAL INFORMATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 487J, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§487J‑ Unlawful use of Hawaii identification card or driver's license. (a) No business may scan the machine-readable zone of an individual's Hawaii certificate of identification or driver's license, except for the following purposes:

(1) To verify the identity of the individual who possesses the Hawaii certificate of identification or driver's license if the individual pays for goods or services with a method other than cash, returns an item, or requests a refund;

(2) To verify the individual’s age when providing age-restricted goods or services to the individual if there is any reasonable doubt of the individual’s having reached twenty-one years of age;

(3) To prevent fraud or other criminal activity if the individual returns an item or requests a refund and the business uses a fraud prevention service company or system;

(4) To establish or maintain a contract between the business and the individual; provided that the information collected by scanning the individual's Hawaii certificate of identification or driver’s license for the establishment or maintenance of a contract shall be limited to the individual's:

(A) Name;

(B) Address;

(D) Driver’s license number or certificate of identification number;

(5) To record, retain, or transmit information as required by state or federal law; and

(6) To transmit information to a consumer reporting agency, financial institution, or debt collector for the purpose of approving, processing, or collecting negotiable instruments, electronic funds transfers, or other methods of payments.

(b) No business shall retain any information obtained pursuant to subsection (a), except as provided in subsections (a)(4) through (6). No business shall store, sell, or disseminate any information obtained under this section for any purpose, including marketing, advertising, or promotional activities.

(c) Any business, except a consumer reporting agency, debt collector, or financial institution, that obtains information by scanning the machine-readable zone of an individual's certificate of identification or driver's license pursuant to subsection (a), shall purge or delete any information so obtained no later than five days after it is obtained.

(d) A business subject to this section shall make reasonable efforts, through systems testing and other means, to ensure that the requirements of this chapter are met.

(e) Any contract or agreement that purports to be a waiver of any provision of this section is contrary to public policy and is void and unenforceable.

(f) For purposes of this section:

"Consumer reporting agency" shall have the same meaning as in the federal Fair Credit Reporting Act, title 15 United States Code section 1681a(f).

"Debt collector" shall have the same meaning as in the federal Fair Debt Collection Practices Act, title 15 United States Code section 1692a.

"Financial institution" shall have the same meaning as in the federal Gramm-Leach-Bliley Act, title 15 United States Code section 6809."

SECTION 2. Section 487J-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

""Scan" means to access the machine-readable zone of an individual's Hawaii certificate of identification or driver's license with an electronic device capable of deciphering, in an electronically readable format, information electronically encoded on an individual's Hawaii certificate of identification or driver's license."

SECTION 3. Chapter 487J, Hawaii Revised Statutes, is amended by amending its title to read as follows:

"CHAPTER 487J

[~~SOCIAL SECURITY NUMBER~~] PERSONAL INFORMATION PROTECTION"

SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on January 7, 2059.