STAND. COM. REP. NO. 582

Honolulu, Hawaii

RE: S.B. No. 1178

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 1178 entitled:

"A BILL FOR AN ACT RELATING TO PRIVACY,"

begs leave to report as follows:

The purpose and intent of this measure is to modernize the definition of "personal information" for the purposes of notifying affected persons of data and security breaches.

Your Committee received testimony in support of this measure from the Office of Consumer Protection of the Department of Commerce and Consumer Affairs and three individuals. Your Committee received testimony in opposition to this measure from the State Privacy & Security Coalition and TechNet. Your Committee received comments on this measure from Hawaii Bankers Association, Hawaii Financial Services Association, and Hawaii Credit Union League.

Your Committee finds that the public use of the Internet and related technologies has significantly expanded in recent years. Nevertheless, a lack of meaningful government regulation has resulted in personal privacy being compromised. Chapter 487N, Hawaii Revised Statutes, requires certain businesses and government agencies that collect "personal information" to notify the public of data breaches. However, the definition of "personal information" as used in existing law is now outdated and is not comprehensive enough to cover additional personal identifiers. This measure modernizes the definition of "personal information" in chapter 487N, Hawaii Revised Statutes.

Your Committee has amended this measure by:

(1) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1178, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1178, S.D. 1, and be referred to your Committee on Judiciary.

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

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JARRETT KEOHOKALOLE, Chair