STAND. COM. REP. NO.  686-12

Honolulu, Hawaii

                , 2012

RE:   H.B. No. 2047

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committees on Consumer Protection & Commerce and Judiciary, to which was referred H.B. No. 2047 entitled:

"A BILL FOR AN ACT RELATING TO INFORMATION PROTECTION,"

beg leave to report as follows:

The purpose of this measure is to protect individuals from identity theft by:

     (1)  Requiring every business that maintains personal information to implement a comprehensive, written policy and procedure to prevent identity theft by January 1, 2014;

     (2)  Requiring the policy and procedure to include administrative, technical, and physical safeguards for the protection of personal information; and

     (3)  Providing penalties for businesses that do not comply with these personal information requirements.

ID Theft Solutions of America testified in support of this measure.  The Office of Consumer Protection of the Department of Commerce and Consumer Affairs testified in support of the intent of this measure.  The Consumer Data Industry Association; Hawaii Bankers Association; Hawaiian Electric Company, Inc.; Maui Electric Company, Ltd.; Hawaii Electric Light Company, Inc.; and Hawaii Credit Union League testified in opposition to this measure.  The Commissioner of Financial Institutions of the Department of Commerce and Consumer Affairs, Retail Merchants of Hawaii, and American Council of Life Insurers provided comments.

     Your Committees have amended this bill by:

     (1)  Changing its effective date to July 1, 2050, to facilitate further discussion; and

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

     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 H.B. No. 2047, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2047, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committees on Consumer Protection & Commerce and Judiciary,

____________________________ GILBERT KEITH-AGARAN, Chair

____________________________ ROBERT N. HERKES, Chair