THE SENATE

S.B. NO.

2485

TWENTY-EIGHTH LEGISLATURE, 2016

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to security breaches of personal information.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


SECTION 1. Chapter 487N, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"487N- Security breach; strict liability for damages. (a) Any business whose security breach has caused damage to a consumer of the services of that business shall be strictly liable to that consumer in an amount equal to the sum of any actual damages sustained by the consumer as a result of the security breach.

(b) Subsection (a) shall apply notwithstanding the use by the business of any disclaimers of liability for the consumer's use of its services. Any contract clause that purports to prohibit a consumer from bringing legal action against the business, or require arbitration in lieu of litigation, shall be void."

SECTION 2. Section 487N-3, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) Any business that violates [any provision of this chapter] section 487N-2 shall be subject to penalties of not more than $2,500 for each violation. The attorney general or the executive director of the office of consumer protection may bring an action pursuant to this section. No such action may be brought against a government agency.

(b) In addition to any penalty provided for in subsection (a), any business that violates [any provision of this chapter] section 487N-2 shall be liable to the injured [party] consumer in an amount equal to the sum of any actual damages sustained by the injured [party] consumer as a result of the violation. The court in any action brought under this section may award reasonable attorneys' fees to the prevailing [party.] consumer. No such action may be brought against a government agency."

SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Security Breach; Disclaimers

 

Description:

Makes businesses strictly liable for damages to a consumer resulting from a security breach, regardless of disclaimers of liability.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.