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Hawaii – ID Scanning Law

On June 28, 2012 – Hawaii passed a law regulating how IDs are scanned.  Hawaii allows scanning ID and collecting data from drivers licenses and ID cards for certain defined purposes.  Below is a copy of the bill which we believe was passed into law.  The author is not a lawyer and readers are urged to seek legal counsel before acting on this information.

This new law protects privacy by banning private businesses from scanning IDs and collecting data except for certain purposes.  Before this law, there was almost no restriction of scanning or use of scanned data.  Below is the bill followed by some FAQs

Read the text of the bill:

THE SENATE 2419

TWENTY-SIXTH LEGISLATURE, 2012  S.D. 2

STATE OF HAWAII H.D. 3  C.D. 1

A BILL FOR AN ACT  – RELATING TO PERSONAL INFORMATION.

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

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

     “§487J‑    Unlawful use of Hawaii identification card or driver’s license.  (a)  No business may scan the machine-readable zone of an individual’s Hawaii identification card or driver’s license, except for the following purposes:

(1)  To verify authenticity of the identification card or driver’s license or to verify the identity of the individual if the individual pays for goods or services with a method other than cash, returns an item, or requests a refund or an exchange;

(2)  To verify the individual’s age when providing age-restricted goods or services to the individual if there is a reasonable doubt of the individual having reached eighteen years of age or older;

(3)  To prevent fraud or other criminal activity if the individual returns an item or requests a refund or an exchange and the business uses a fraud prevention service company or system.  Information collected by scanning an individual’s Hawaii identification card or driver’s license pursuant to this subsection shall be limited to the following information from the individual:

(A)  Name;

(B)  Address;

(C)  Date of Birth; and

(D)  Driver’s license number or identification card number;

(4)  To establish or maintain a contractual relationship.  Information collected by scanning the individual’s Hawaii identification card or driver’s license pursuant to this subsection shall be limited to the following information from the individual:

(A)  Name;

(B)  Address;

(C)  Date of birth; and

(D)  Driver’s license number or identification card number;

(5)  To record, retain, or transmit information as required by state or federal law;

(6)  To transmit information to a consumer reporting agency, financial institution, or debt collector to be used as permitted by the federal Fair Credit Reporting Act, Gramm-Leach-Bliley Act, or the Fair Debt Collection Practices Act; and

(7)  To record, retain, or transmit information by a covered entity governed by the medical privacy and security rules issued by the federal Department of Health and Human Services, Parts 160 and 164 of the Code of Federal Regulations, established pursuant to the Health Insurance Portability and Availability Act of 1996.

(b)  No business shall retain any information obtained pursuant to subsection (a), except as permitted in subsections (a)(3) through (7).

(c)  No business shall sell or disseminate to a third party any information obtained under this section for any purpose, including marketing, advertising, or promotional activities, except as permitted in subsections (a)(3) through (7).

(d)  A business covered under this section shall make reasonable efforts, through systems testing and other means, to ensure that the requirements of this chapter are met.

(e)  Any waiver of a provision of this section is contrary to public policy and is void and unenforceable.

(f)  For purposes of this section:

“Consumer reporting agency” shall have the same meaning as in the federal Fair Credit Reporting Act, title 15 United States Code section 1681a(f).

“Covered entity” shall have the same meaning as in the security rules issued by the federal Department of Health and Human Services, Parts 160 and 164 of the Code of Federal Regulations, established pursuant to the Health Insurance Portability and Availability Act of 1996.

“Debt collector” shall have the same meaning as in the federal Fair Debt Collection Practices Act, title 15 United States Code section 1692a.

“Financial institution” shall have the same meaning as in the federal Gramm-Leach-Bliley Act, title 15 United States Code section 6809.

SECTION 2.  Section 487J-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

“Scan” or “scanning” means to access the machine-readable zone of an individual’s Hawaii identification card or driver’s license with an electronic device capable of deciphering, in an electronically readable format, information electronically encoded on an individual’s Hawaii identification card or driver’s license.

SECTION 3.  Chapter 487J, Hawaii Revised Statutes, is amended by amending its title to read as follows:

“CHAPTER 487J

     [SOCIAL SECURITY NUMBER] PERSONAL INFORMATION PROTECTION”

SECTION 4.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

SECTION 6.  This Act shall take effect upon its approval.

 

Report Title:

Personal Information; Unlawful Use of Hawaii Identification Card or Driver’s License

Description:

Allows the scanning and retention of personal information contained in a Hawaii identification card or driver’s license for limited purposes only.  (CD1)

 

Frequently Asked Questions

Q: What information can a business swipe from my driver’s license or ID card barcode?

A: When permitted, a business may collect ONLY your name, address, date of birth, and license number or ID card number.

Q: When is it legal for a business to scan the barcode on my ID?

A: Hawaii law bans businesses from scanning your driver’s license barcode except in the following cases:

    • There is a reasonable doubt that you are under 18 years of age and you are buying age restricted goods or services, like cigarettes, alcohol, Nicorette gum, mature video games, or cold medicines;
    • You pay for something with a credit or debit card, return an item or request a refund or an exchange and the business wants to verify your identity or the authenticity of your driver’s license;
    • The business is establishing or maintaining a contract with you, like a cell-phone plan contract.

Q: Does the new law prohibit a company from making a photocopy of my ID? 

A: No. The law only restricts the scanning of the barcode information.

Q. Can a business sell my information to a third party?

A. Not under the new law.

Q: Is a business allowed to keep my information or send it to another organization?

A. In most cases, no.  However, a business can retain the information or send it to an outside agency in a few cases:

    • If required by state or federal law
    • for the use of a fraud prevention service company or system
    • To establish or maintain a contractual relationship
    • To transmit information to a consumer reporting agency, financial institution, or debt collector as permitted by the federal Fair Credit Reporting Act, Gramm-Leach-Bliley Act, or the Fair Debt Collection Practices Act
    • To record, retain, or transmit information by a covered entity governed by the medical privacy and security rules as established by the Department of Health and Human Services

Q. Which stores in Hawaii use driver’s license scanners? 

A. Any store that uses The Retail Equation’s return authorization solutions.If you know of more stores, please tell us! (list as of 7/24/12). The ACLU of Hawaii recently sent a letter to the General Managers of each Hawaii store known to be affected by this new law, ACLU Hawaii Drivers License Scanning.

    • Famous Footwear
    • Victoria’s Secret
    • Finish Line
    • 7-11
    • Best Buy
    • Target
    • Walmart
    • Verizon
    • AT&T

Q: What should I do if I think that my license is being scanned illegally?

A: If you believe that a business is illegally scanning drivers’ licenses, notify the Hawaii State Office of Consumer Protection at http://hawaii.gov/dcca/ocp/.  You can also contact the ACLU of Hawaii http:www.acluhawaii.org.