STAND. COM. REP. NO. 1339-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 3016

S.D. 1

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 3016, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PRIVACY,"

begs leave to report as follows:

The purpose of this measure is to modernize the definition of "personal information" under the law governing security breaches of personal information.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs; Retail Merchants of Hawaii; and one individual. Your Committee received testimony in opposition to this measure from the Consumer Data Industry Association; Hawaii Financial Services Association; and Mortgage Bankers Association of Hawaii. Your Committee received comments on this measure from the National Association of Mutual Insurance Companies; State Farm; Hawaii Bankers Association; and Hawaii Credit Union League.

Your Committee finds that House Concurrent Resolution No. 225, H.D. 1, S.D. 1 (2019), convened the Twenty-First Century Privacy Law Task Force to examine and make recommendations regarding existing privacy laws and regulations to protect the privacy interests of the people of Hawaii. One of the Task Force's recommendations was that the definition of "personal information", under the law governing security breaches of personal information, should be modernized to sufficiently account for additional identifying data elements that would place an individual at risk of identity theft or may compromise the individual's personal safety if the elements are exposed to the public. This measure implements this recommendation.

Your Committee notes that under various provisions of the Hawaii Revised Statutes and court rules, a Social Security number is allowed to be truncated down to the last four digits. Your Committee notes its concern that such a practice would constitute a security breach under this measure and that amendments to those provisions may be warranted to further protect the personal information of state residents.

Your Committee has amended this measure by:

(1) Broadening the exception for publicly available information within the definition of "personal information" to include information made available to the general public from any source, rather than limiting the exclusion to government records;

(2) Changing the effective date to July 1, 3000, to encourage further discussion; and

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

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 S.B. No. 3016, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3016, S.D. 1, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

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

____________________________

SCOT Z. MATAYOSHI, Chair