HB2499

SECTION 1. The legislature finds that Hawaii's unique population, long-standing community expectations around disaggregated data, and varied operational capacities across state systems require a flexible statutory approach when collecting state demographic data. The legislature further finds that in 2024, the federal Office of Management and Budget issued significant updates to Statistical Policy Directive No. 15, which required federal agencies to adopt new minimum categories, collect detailed subgroups, and modernize multiracial reporting practices. The intention behind these revisions was to produce more accurate and useful race and ethnicity data across the federal government.

The legislature also finds that any demographic data used in automated or artificial intelligence systems must be subject to transparency, privacy protections, and bias testing. Any data use must also remain focused on public interest purposes, such as health equity, language access, and civil rights enforcement.

Accordingly, the purpose of this Act is to establish a coordinated, statewide framework for the collection, governance, and responsible use of race and ethnicity data by directing the office of enterprise technology services to develop statewide demographic data standards, in consultation with relevant agencies, that align with federal guidance while accommodating Hawaii-specific needs, survey instrument constraints, and evolving technology.

SECTION 2. Chapter 27, Hawaii Revised Statutes, is amended by adding two new sections to part VII to be appropriately designated and to read as follows:

"§27- Demographic data; race and ethnicity; statewide standards; coordination; artificial intelligence safeguards. (a) The office of enterprise technology services shall coordinate the development and maintenance of statewide standards for the collection, management, and reporting of race and ethnicity demographic data by any state or county department, agency, board, or commission.

(b) The statewide standards established pursuant to this section shall:

(1) Align, at minimum, with federal requirements, including the federal Office of Management and Budget's Statistical Policy Directive No. 15 (2024), as amended;

(2) Provide flexibility to accommodate survey instruments, federal program requirements, and system constraints;

(3) Include guidance on the collection of detailed subgroups and the processing and reporting of multiracial responses consistent with federal standards; and

(4) Be updated periodically by the office of enterprise technology services to maintain alignment with evolving federal guidance and community needs.

(c) Each state or county department, agency, board, or commission that directly or by contract collects race and ethnicity data shall at minimum follow the statewide standards established by the office of enterprise technology services pursuant to this section. Departments and agencies shall retain responsibility for data collection and reporting within their respective programs.

(d) The office of enterprise technology services shall publish the statewide demographic data standards and related documentation on data.hawaii.gov, or successor website.

(e) If demographic data collected pursuant to this section is used to inform an automated or artificial intelligence system, the office of enterprise technology services shall:

(1) Conduct or require bias testing prior to deployment;

(2) Ensure ongoing monitoring for fairness and equity;

(3) Publish plain-language descriptions of these uses; and

(4) Ensure that all federal and state privacy laws, standards, and guidelines apply to the use of the data.

(f) The use of demographic data collected pursuant to this section shall be focused solely on public interest purposes, including but not limited to health equity, language access, civil rights enforcement, and resource allocation. Personal identifying information shall remain confidential and shall not be subject to public disclosure.

(g) The office of enterprise technology services may adopt rules pursuant to chapter 91 to carry out the purposes of this section.

§27- Demographic data; race and ethnicity; reporting; consultation; flexibility. (a) Each state or county department, agency, board, or commission that collects race and ethnicity data shall collect the data in alignment with federal requirements and shall report to the office of enterprise technology services on meeting the federal requirements at intervals established by the office.

(b) The office of enterprise technology services shall consult with the department of health, department of education, department of human services, the judiciary, and other relevant agencies, as determined by the office, to ensure that the statewide standards account for:

(1) Federal program requirements;

(2) Survey and instrument limitations;

(3) Privacy and confidentiality protections; and

(4) Data quality and reliability and safety and security for disaggregated data to support public interest analyses.

(c) The office of enterprise technology services may grant exceptions or phased implementation timelines when a department, agency, board, or commission demonstrates to the office that federal instrument constraints, technological limitations, or resource conditions prevent immediate compliance with statewide standards.

(d) The office of enterprise technology services shall provide technical assistance to state and county departments, agencies, boards, and commissions in updating systems, software, and reporting tools to meet the statewide standards."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2026-2027 for the office of enterprise technology services to coordinate statewide demographic data standards; provide technical assistance to departments, agencies, boards, and commissions; and support implementation of this Act.

The sum appropriated shall be expended by the office of enterprise technology services for the purposes of this Act.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2026.

INTRODUCED BY:

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HOUSE OF REPRESENTATIVES	H.B. NO.	2499
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII