STAND. COM. REP. NO. 538-18

Honolulu, Hawaii

, 2018

RE: H.B. No. 2296

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 2296, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INTERNET PRIVACY,"

begs leave to report as follows:

The purpose of this measure is to protect the privacy of customers of internet service providers by prohibiting internet service providers from using, disclosing, selling, or permitting access to the personal information of their customers without prior written consent, or unless otherwise permitted by law under specified circumstances.

The American Civil Liberties Union of Hawai‘i and two individuals supported this measure. CTIA and Charter Communications opposed this measure. The Department of the Attorney General and Hawaiian Telcom provided comments.

Your Committee notes that concerns were raised by the Department of the Attorney General about prohibiting internet service providers from using, disclosing, selling, or permitting access to the personal information of customers. These provisions may subject this measure to a preemption challenge by the Federal Communications Commission, which issued a declaratory order that purports to establish a federal deregulatory regime for broadband internet access providers and can preempt inconsistent state laws.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2296, H.D. 1, and recommends that it be referred to your Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ROY M. TAKUMI, Chair