STAND. COM. REP. NO. 2924

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1788

       H.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

 

Sir:

 

     Your Committee on Economic Development and Technology, to which was referred H.B. No. 1788, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO COMPUTER CRIME,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to update Hawaii's computer fraud statutes by adding language mirroring Hawaii's identity theft statutes to better address the realities of modern cybercrime.  Specifically, this measure:

 

     (1)  Establishes a new offense of computer fraud in the third degree;

 

     (2)  Adds new definitions related to computer crime to incorporate the element of phishing and spyware into all computer fraud offenses and unauthorized computer access offenses;

 

     (3)  Changes the offenses of computer crime in the first degree and unauthorized computer access in the first degree from class B to class A felonies;

 

     (4)  Changes the offenses of computer crime in the second degree and unauthorized computer access in the second degree from class C to class B felonies; and

 

     (5)  Increases the minimum value of identifying information obtained that constitutes unauthorized computer access in the first degree from $5,000 to $20,000.

 

     Your Committee received testimony in support of this measure from the Department of the Prosecuting Attorney of the City and County of Honolulu.  Your Committee received testimony in opposition to this measure from the High Technology Development Corporation.  Your Committee received comments on this measure from Hawaiian Electric Company.

 

     Your Committee has heard that Hawaii's current computer fraud statutes are too narrow to address most activities that are typically thought of as "computer fraud".  For example, first-degree computer fraud requires proof that an offender accessed a computer without authorization to obtain or exert control over the property of another.  However, most potential computer fraud offenders use their own computer, which they presumably are authorized to use to carry out offenses such as online auction fraud, advance fee scams, counterfeit check scams, phishing, and e-mail scams.

 

While your Committee supports more effective prosecution of computer crimes, your Committee has also heard concerns regarding some of the proposed language in this measure.  Your Committee notes that this measure already contains an effective date of January 7, 2059, inserted by a previous committee for the purposes of continuing discussion, and urges further work by interested stakeholders to address these concerns and recommendations as this measure progresses through the legislative process.

 

     As affirmed by the record of votes of the members of your Committee on Economic Development and Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1788, H.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Judiciary and Labor.

 


Respectfully submitted on behalf of the members of the Committee on Economic Development and Technology,

 

 

 

____________________________

CAROL FUKUNAGA, Chair