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Hawaii Cybersecurity, Privacy & Data Security Laws
Hawaii Cybersecurity & Privacy Laws: A Guide for SMBs & Licensees
Navigate the data security and privacy landscape in Hawaii. TEKRiSQ helps Small and Medium Businesses and Insurance Licensees understand their compliance obligations to protect data and avoid penalties.
Understanding Data Protection in the Aloha State
Hawaii has enacted important legislation to safeguard personal information, ensure data security, and regulate privacy, particularly through its data breach notification requirements and a dedicated Insurance Data Security Law. While a comprehensive consumer privacy law (like the Hawaii Consumer Data Protection Act) has been proposed, businesses must currently focus on existing mandates.
For Small and Medium Businesses (SMBs) and entities holding specific licenses (like insurance companies) operating in or serving Hawaii residents, adherence to these laws is crucial. Non-compliance can lead to significant financial repercussions, legal challenges, and damage to your business’s reputation.
This guide provides a clear overview of Hawaii’s key cybersecurity, data security, and privacy laws, summarizing your responsibilities and explaining why proactive compliance is essential for protecting your data and ensuring business continuity.
Hawaii Data Breach Notification Law (HRS § 487N-2)
What is This Law?
Hawaii Revised Statutes (HRS) § 487N-2 requires any business or government agency that owns, licenses, maintains, or possesses personal information of Hawaii residents to provide notice in the event of a security breach. This applies to both computerized and paper records.
Key SMB Responsibilities:
- Prompt Notification: Provide notice “without unreasonable delay” after discovery of a breach, consistent with law enforcement needs and measures to determine scope and restore system integrity.
- Covered Personal Information: Includes first name or initial and last name combined with Social Security number, driver’s license/Hawaii ID number, or financial account/credit/debit card number with access code. Also covers unencrypted or unredacted records where illegal use is likely and creates a risk of harm.
- Notification Methods: Written notice, electronic mail (with consent), or telephonic notice (direct contact). Substitute notice is allowed if cost exceeds $100,000, affected individuals exceed 200,000, or insufficient contact info.
- Office of Consumer Protection (OCP) Notification: If a breach affects more than 1,000 Hawaii residents, you must notify the State of Hawaii’s Office of Consumer Protection in writing, without unreasonable delay.
- Consumer Reporting Agency Notification: If more than 1,000 residents are affected, you must also notify all nationwide consumer reporting agencies.
- Third-Party Data Handlers: If you maintain data owned by another entity, you must notify the owner/licensor immediately upon discovery of a breach.
Why it’s Important:
This law is crucial for protecting Hawaii residents from identity theft and fraud by enabling them to take timely action. For SMBs, compliance is vital for managing crisis communication, maintaining transparency, and avoiding significant civil penalties (up to $2,500 per violation) and civil actions for actual damages.
Read the full Hawaii Data Breach Notification Law (HRS § 487N-2) →
Hawaii Office of Consumer Protection: Security Breach Notices →
Hawaii Insurance Data Security Law (Act 112, SLH 2021)
What is This Law?
Hawaii’s Act 112, signed into law in 2021, adopts the National Association of Insurance Commissioners’ (NAIC) Insurance Data Security Model Law. This law establishes exclusive state standards for data security applicable to Hawaii insurance licensees, aiming to strengthen existing data privacy and consumer breach notification obligations.
Key Licensee Responsibilities:
- Information Security Program (ISP): Develop, implement, and maintain a comprehensive written ISP based on your risk assessment, with administrative, technical, and physical safeguards for nonpublic information.
- Risk Assessment: Conduct ongoing assessments to identify reasonably foreseeable internal or external threats to nonpublic information and information systems.
- Access Controls & Encryption: Implement controls like multi-factor authentication (MFA) and encrypt nonpublic information during transmission and at rest.
- Regular Testing & Monitoring: Continuously test and monitor systems and procedures to detect attacks and intrusions.
- Incident Response Plan (IRP): Establish a written IRP to promptly respond to and recover from cybersecurity events that compromise nonpublic information.
- Cybersecurity Awareness Training: Provide personnel with training that is updated as necessary to reflect identified risks.
- Third-Party Service Provider Oversight: Exercise due diligence and require third parties to implement appropriate security measures.
- Cybersecurity Event Notification: Notify the Hawaii Insurance Commissioner as promptly as possible, but no later than 3 business days from a determination that a cybersecurity event impacting 250 or more consumers has occurred.
Why it’s Important:
This law is vital for protecting the highly sensitive financial and health information handled by insurance entities. Compliance builds trust with policyholders, mitigates the severe financial and reputational damage of data breaches, and ensures regulatory alignment with national standards. It’s a proactive measure to secure a critical industry.
Why Hawaii Compliance Matters for All SMBs
Beyond specific industry regulations, a strong compliance posture is essential for every Hawaii SMB.
Avoid Costly Penalties
Non-compliance with state laws can lead to significant fines and legal fees that can cripple a small business.
Build & Maintain Customer Trust
Consumers are increasingly aware of their data privacy rights. Demonstrating robust compliance builds trust and enhances your brand’s reputation.
Protect Against Cyber Threats
Compliance often mandates the implementation of strong cybersecurity measures, directly protecting your business from data breaches, ransomware, and other attacks.
Ensure Business Continuity
Proactive compliance and security measures significantly reduce the likelihood and impact of disruptive security incidents, ensuring your operations continue smoothly.
Competitive Advantage
Being recognized as a secure and compliant business can differentiate you from competitors and attract more clients, especially in sensitive industries.
Streamline Operations
Implementing well-defined security and privacy practices leads to more organized and efficient data handling.
TEKRiSQ Solutions for Hawaii Compliance
TEKRiSQ offers comprehensive services to help your Hawaii SMB or licensed entity achieve and maintain compliance with state cybersecurity and privacy laws.
Cyber Risk Assessments
Identify vulnerabilities and compliance gaps specific to Hawaii’s regulations.
Data Governance & Privacy
Implement frameworks for data handling, aligning with Hawaii privacy mandates.
Incident Response Planning (IRP)
Develop robust plans to meet Hawaii data breach notification requirements.
Employee Cybersecurity Training
Educate your team on their role in protecting data and complying with state laws.
Managed Security Services
Ongoing support to continuously monitor and improve your security posture for sustained compliance.
Endpoint Protection (EDR)
Advanced threat detection and response for your devices, a key component of robust security.
Hawaii State Contacts & Resources
For official information and assistance regarding Hawaii’s data privacy, security, and insurance laws, you can contact:
Hawaii Department of Commerce and Consumer Affairs (DCCA) – Insurance Division
General Inquiries:
Phone: (808) 586-2790
Ready to Ensure Your Hawaii Compliance?
Don’t let complex regulations be a barrier. Partner with TEKRiSQ for expert guidance and practical solutions.
