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Hawaii: Senate Bill relating to consumer data protection introduced, passes first reading

Senate Bill ('SB') 974 Relating to Consumer Data Protection was introduced, on 20 January 2023, to the Hawaii Senate and passed first reading on 23 January 2023. In particular, SB 974 clarifies that it aims to establish a framework to regulate controllers and processors' access to personal consumer data and introduces penalties as well as a new consumer privacy special fund. More specifically, SB 974 defines terms, including biometric data, profiling, child, consent, controller, and personal data, and provides consumer rights, including rights to access, correction, deletion, data portability, and to opt-out.

In addition, SB 974 introduces obligations for data controllers, including:

  • data minimisation;
  • the adoption, implementation, and maintenance of reasonable administrative, technical, and physical data security measures;
  • requirements for the processing of sensitive data;
  • the establishment of a privacy notice;
  • vendor management requirements, including the conclusion of a contract between the controller and processor; and
  • the conducting of Data Protection Impact Assessments.

Furthermore, SB 974 states that it applies to persons that conduct business in the State of Hawaii or produce products or services that are targeted to residents of the same and:

  • during a calendar year, control or process personal data of at least 100,000 consumers; or
  • control or process the personal data of at least 25,000 consumers and derive over 25% of gross revenue from the sale of personal data.

Importantly, SB 974 clarifies that it will not apply to government entities, non-profit organisations, or institutions of higher education.

You can read SB 974 and track its progress here.

UPDATE (27 January 2023)

SB 974 referred to Commerce and Consumer Protection Committee

SB 974 was referred, on 27 January 2023, to the Commerce and Consumer Protection Committee.

You can read SB 974 and track its progress here.