STAND. COM. REP. NO. 1538

Honolulu, Hawaii

, 2005

RE: S.B. No. 1170

S.D. 2

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Consumer Protection & Commerce and Judiciary, to which was referred S.B. No. 1170, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO ELECTRONIC COMMERCE,"

beg leave to report as follows:

The purpose of this bill is to establish a state anti-"phishing" task force to review other jurisdictions' activities on curtailing electronic commerce-related criminal activities. Specifically, this bill requires the task force to:

(1) Examine the policies, procedures, and operations of state agencies charged with the responsibility of developing policies to prevent electronic commerce-based crimes, monitoring electronic commerce-based criminal activity, and enforcing electronic commerce-based criminal sanctions;

(2) Review other jurisdictions' activities, policies, directives, and laws related to preventing electronic commerce-based crimes and derive best practices models therefrom;

(3) Explore other options available to the task force to deter electronic commerce-based crimes from occurring in Hawaii;

(4) Establish findings and develop recommendations on how best to deter electronic commerce-based crimes from occurring in the Hawaii; and

(5) Submit its findings and recommendations, including any proposed legislation, no later than 20 days prior to the convening of the Regular Session of 2006.

The Honolulu Police Department (HPD), First Hawaiian Bank, and Hawaii Financial Services Association testified in support of this bill.

Your Committees find that "phishing" is a serious problem which costs consumers and businesses billions of dollars every year. "Phishing" is a form of Internet fraud in which Internet "scammers" under false pretenses cause a consumer to divulge personal and confidential information such as passwords and credit card, social security, and bank account numbers. Your Committees find that, by convening a task force, this measure provides a first step in addressing the problem of "phishing" and restoring consumer confidence in Internet-related commerce.

As requested by HPD, your Committees have amended this measure by adding to the anti-phishing task force:

(1) A member of the HPD's criminal investigation division; and

(2) A member of the Honolulu Field Office's United States Secret Service electronic crimes unit.

Technical, nonsubstantive amendments were also made for clarity, consistency, and style.

As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1170, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1170, S.D. 2, H.D. 1, and be placed on the calendar for Third Reading.

 

Respectfully submitted on behalf of the members of the Committees on Consumer Protection & Commerce and Judiciary,

 

____________________________

SYLVIA LUKE, Chair

____________________________

KENNETH HIRAKI, Chair