STAND. COM. REP. NO. 299-18

Honolulu, Hawaii

, 2018

RE: H.B. No. 2342

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. 2342 entitled:

"A BILL FOR AN ACT RELATING TO CONSUMER CREDIT REPORTING AGENCIES,"

begs leave to report as follows:

The purpose of this measure is to enhance consumer protections by allowing consumers, protected consumers, and protected consumers' representatives to place, remove, or lift a security freeze at no charge with a credit reporting agency.

The Office of Consumer Protection of the Department of Commerce and Consumer Affairs, Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO, AARP Hawaii, and a few individuals testified in support of this measure. Consumer Data Industry Association provided comments.

Your Committee has amended this measure by:

(1) Removing the provision allowing consumers to request a security freeze through electronic mail;

(2) Preserving the consumer credit reporting agency's ability to lift a security freeze when the freeze was executed in reliance of material misrepresentation by the consumer;

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

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

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. 2342, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2342, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

ROY M. TAKUMI, Chair